WORKING SMARTER THROUGH RESTRUCTURING AND BEYOND
“If you see a light at the end of the tunnel, it’s the light of an oncoming train”. --Robert Lowell
Goals of restructuring: • Create sustainablestreamlined infrastructure. • Deliver more consistent service to industry. HUD RESTRUCTURING
Very simple….change how WE do business or reap the consequences. What consequences? • Delivery time will only worsen during period of implementation. • Fail to retain quality borrowers who have come to the program due lack of alternate financing in recent years. Now What?
Written by Jeff Olson • Impact of doing little things consistently; and • Impact of not doing little things consistently • Slow down to go fast. If you didn’t have time to do it right the first time, when will you have time to do it a second time? • Creates a ripple effect – for better or worse. What’s The Slight Edge?
RESULTS OF HABITS • Source: The Slight Edge, Jeff Olson
Originators • Underwriters, Analysts, & Processors • Market Analysts • Appraisers • Environmental Firms • AEC Firms • Closers • Lender’s Counsel • Borrower’s Counsel What are you willing to do?
What’s Working and What’s Not? • Suggestions & issues to be discussed with HUD – establish “parking lot” of issues to address with HUD. What will we ask HUD to do?
Intake process – Make sure all disciplines receive their information. • Review process – let the lender know if further reviews are on-going as comments are received. • Work with us to expedite review periods – what can we do to help. Extension fees are costly. • Work with us on when closing packages can be submitted. Holding up until RL Amendment approved causes costly extension fees. • Be reasonable and/or help us understand why so many sets of closing documents are required in some offices. What will we ask HUD to do?
Here’s a start from Jacksonville…. • Narrative - include comments from Concept Meeting. • Application on CD – break it up – do not include on one CD • Submit Wheelbarrow on CD • Deficiency Responses – 1 Original package & 4 Copies mailed. Submitting Deficiency Responses via Email is not recommended. • Reserves – Appraiser to explain differences in market vs. project. What will HUD ask us to do?
NOI – use market NOI for 2264 to support Criterion 3. Difference in project NOI, address in narrative & use that amount for Criterion 5. • Suggested Application Format - Jacksonville has suggested formats for application submission - expedite distribution. • Flood Zones – If in a flood zone, submit the flood plain elevations. • Onsite Contacts – Include name, phone # & email of onsite contact in narrative. What will HUD ask us to do cont’d…
Goal of this session is to get us talking. - what needs to change - What are we willing to do Continuing dialogue of how we create a positive Ripple Effect. 2013 SMAC COMMUNITY COVENANT