3.8.7 Other Issues

A. Projects in which the repairs or rehabilitation is extensive enough to require an Environmental review above categorical exclusion not subject to the laws and authorities (CENST) (See Chapter 9, Section 9.1.3.A) or compliance with Davis-Bacon Wages, are not eligible for Section 223(a)(7) refinancing.

B. An officer of the Lender who is an approved signatory must sign the application. Site visits and an approved MAP Underwriter are generally not required, though the physical condition or other issues in specific transactions may require such a site visit and Underwriter review.

C. Prepayment approval must be requested by the servicing mortgagee at the time of the application. When the refinancing is being performed by a different firm than currently services the loan, a letter accompanying the Firm Commitment application and signed by the Borrower to the Servicing Lender notifying them of their Borrower’s intent to refinance and requesting their filing of the form HUD-9807 will be accepted in lieu of the actual request for prepayment approval.