Regulatory Reinvention; Streamlining of Housing Finance Agency Risk-Sharing Program for Insured Affordable Multifamily Project Loans

This final rule streamlines HUD's regulations governing the Housing Finance Agency (HFA) Risk-Sharing program at 24 CFR part 266. Specifically, this rule removes regulatory provisions from part 266 which are best set forth in non-regulatory guidance. Under the HFA Risk-Sharing Program, HFAs are permitted to originate and service mortgage loans that are fully insured by the Federal Housing Administration. Participating HFAs are required to share in the risk associated with monetary losses that may result from loan defaults. HUD's elimination of redundant or unnecessary language from part 266 will increase program flexibility and assist in HUD's continuing efforts to streamline title 24.