11.3.4 Firm Commitment Issuance, Extensions, Amendments and Reissuance

A. Upon issuance of a Firm Commitment, the HUD Underwriter must provide such support as needed and requested to the RC Director (or their delegate) to prepare for closing, and provide files, data, and information as needed by the Account Executive to facilitate Asset Management’s rating and servicing of the loan.

B. Firm Commitments will be issued for a term of 60 calendar days. The Lender has the option of requesting an extension of the Commitment to prepare for the Initial Endorsement submission. The Regional Center Director may grant one or more extensions, for up to a total of 120 calendar days from the original expiration date. An additional 60-day extension for good cause may be approved by the Director of Multifamily Production in HUD Headquarters, after which a reopening fee will be required.

C. When the Regional Center Director determines that extenuating circumstances justify a limited extension of an outstanding Firm Commitment, the Lender must certify and Regional Center Director must concur that the documentation provided by the Lender demonstrates that granting the extension will not likely change the underwriting data and assumptions on which the Firm Commitment was issued or undermine the feasibility of the project. Such factors include but are not limited to a change in the Borrower’s or development team’s configuration or financial capacity, market, inflation or other factors impacting cost. A change in the interest rate or other terms or conditions of the Firm Commitment may require reprocessing and amendment of the Firm Commitment.

D. If a Firm Commitment has been extended beyond 120 calendar days from its original date, the Lender must provide an updated appraisal/market study, cost and mortgage credit, or other information as required by the Regional Center or Satellite Office for review prior to loan closing.

E. Only the Regional Director, Production Division Director, and other officials formally designated to act in these capacities are authorized to sign Firm Commitments and/or endorse Insured Mortgage Notes.

F. The Department has limited flexibility to permit the resubmission of rejected applications. In accordance with the procedures contained in HUD Handbook 4410.1 Rev-2, Project Fiscal Procedures will apply.

G. An amended commitment bears the same date as the original commitment, followed by the date of the amendment, although the applicable regulations are those in effect on the original commitment issuance date. Most underwriting changes, such as changes in mortgage amount and/or interest rate, will be incorporated in letter amendments to the commitment.

H. Additional conditions are part of the Firm Commitment. Changes to the specific terms of such conditions or allowing closings to proceed when conditions are not yet met, must be documented with a letter amendment to the Firm Commitment.

I. A reissued commitment will have its own date which will control what regulations apply and how long the commitment will remain in effect and will substitute for the originally issued commitment. A Lender

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which accepts a reissued commitment will no longer have rights granted under the original, or a previously amended, commitment. A re-issued commitment is required for:

1. Requests for reconsideration of an expired or terminated commitment.

2. Changes in project location.

3. Major changes in plans and specifications.

4. Reprocessing to reflect changes in the MIP.