HUD's Hammer Award Winners

Section 203(k) Acquisition/Rehabilitation Loan Program
Streamlining Task Force - Lenders' Training Guide

Agency Name: HUD\FHA

Location/Contact: Michigan\Detroit
Team Contact Person: Richard Paul
Phone/Fax/Email: (313) 225-4343
City: Detroit
State: Michigan

Brief Description
The HUD Section 203k program allows prospective borrowers to obtain a single government insured loan for purchase and rehabilitation of homes at low, long-term fixed rates. However, this opportunity was not actually available in the Detroit area because private lenders considered the Section 203k program too cumbersome and risky. A team of HUD employees and representatives of the Mortgage Banker Association of Michigan decided to solve the problem by streamlining procedures. They produced the Lenders Training Guide for Processing Section 203k loans in February 1995 and followed it up with training sessions for lender processing and underwriting staff members, non-profit housing developers and local governments. As a result of these efforts, 10 Detroit Area mortgage lenders are now enrolled in the Section 203k program, there were none in 1991. The number of homebuyers and investors benefiting form the program is increasing rapidly last year 35 203k loans were completed, this year the goal is 150.

NPR Contact: Jerry Nikolaus, phone (202) 632-0150, fax (202) 632-0390, email

Date of Award: 05/03/95
Award Presenter: FEA/FEB Detroit

Content Archived: February 8, 2013