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Multifamily Housing: Status of HUD's Multifamily Loan Portfolios

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Report Type Reports and Testimonies
Report Date April 12, 1994
Report No. RCED-94-173FS
Subject
Summary:

The Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), insures mortgages on multifamily properties. In cases of default, a lender may turn over the mortgage to HUD and be paid for an insurance claim--HUD, in effect, becomes the new lender for the mortgage. The number of insured multifamily loans that have defaulted and been assigned to HUD has grown significantly, and the agency believes that even greater numbers of multifamily loans could default in the future, producing additional losses. This fact sheet provides information on the financial state of HUD's multifamily insured and assigned loan portfolio. For the insurance-in-force portfolio, GAO discusses the number of current and delinquent loans. For the HUD-held portfolio, GAO discusses the number of current and delinquent loans, the ratio of loan delinquencies to the unpaid principal balances, and steps that HUD has taken to resolve the delinquencies.

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