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In 2011, the Department of Housing and Urban Development (HUD) revised its Federal Housing Administration (FHA) multifamily closing documents in recognition of modern commercial real estate legal structures (such as changes in the forms of asset ownership), to reduce the FHA’s bad loan risks and improve the efficient management of FHA programs by placing new obligations on lenders to perform more of the due diligence required for loan underwriting that was formerly performed by the FHA, and to require borrowers to recognize their responsibility for managing project operations in manner that prevents waste, fraud, and abuse.
The title makes sense to an experienced lawyer but probably not to anyone else. By following just 10 easy rules, anyone can learn to write titles just like it. By avoiding them, a lawyer can be understood by almost everyone.
As potential advisors to foreign investors, U.S. lawyers should be aware of the tax and reporting obligations that their clients will incur when holding U.S. real property.
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