The Federal Housing Administration this week updated the questionnaire forms that lenders use to obtain condominium single-unit and project approvals.
Details of the changes to HUD Forms 9991 and 9992 were announced in Mortgagee Letter (ML) 2021-09, but they include:
- Form-9992 was reduced from 13 pages to eight pages;
- Form-9991 was reduced from five pages to four pages;
- The biggest change is that the management company or homeowners association is no longer required to sign these forms. The forms can now be signed and completed by the Mortgagee; and
- FHA also consolidated sections of Form-9992 regarding the legal phrasing, occupancy requirements by construction type, transfer of control, legal restrictions on conveyance, financial stability and control and insurance requirements. It’s not that FHA removed those items totally, but they consolidated them to make the forms easier to understand and complete.
Several changes were recommended by NRMLA in comments submitted to HUD last August 27.
Mortgagees may begin using these revised forms immediately; however, neither is mandatory until May 17, 2021.