Guide Update 26-01
:  Restabilization Reserve
Effective:
Restabilization Reserve (Redline).pdf

Primary Audience: Asset Management

HIGHLIGHTS

Effective January 14, 2026, for all Mortgage Loans, clarified your delegated authority to approve certain Restabilization Reserve disbursements.

 

Primary Change

Updated Part V, Chapter 4, Section 418.07: HAP Contract Approval and Releasing Restabilization Reserve to clarify that Fannie Mae consent is not required for a Restabilization Reserve disbursement if it is explicitly authorized per the Loan Documents, including Borrower requests related to a:

  • HAP Contract Delay (such as a Federal Government shutdown); or
  • final disbursement, provided:
    • you received written evidence that the HAP contract has been extended by HUD through the Maturity Date with no material changes to its terms; and
    • no default has occurred and is continuing under the Loan Documents.

Note:  The Borrower must continue making scheduled Debt Service payments regardless of the

  • status of HUD payments per the HAP Contract, or 
  • availability of Restabilization Reserve funds.

 

Questions

Please contact Michael Dick at (202) 752-6634, or [email protected], with any questions.