SMAC Conference takeaways: new HUD guidance and new leadership

From May 7–9, 2025, HUD lenders and stakeholders gathered in Atlanta for the Southeast Mortgagee Advisory Council (SMAC) Conference. This annual event fosters open dialogue between the lending community and HUD leadership. This year’s conference featured timely updates on HUD guidance, including new flexibilities that address key industry concerns. It also marked a special milestone for Walker & Dunlop: Jonathan Barany was appointed to the SMAC Board.

Expanded flexibility for 223(f) transactions

During the HUD Updates panel, which we had the opportunity to participate in, new guidance was introduced to support more consistent application of HUD policies and to accelerate loan submissions and closings for recently completed projects under Section 223(f). These changes reflect HUD’s willingness to respond to market feedback with practical, performance-based solutions.

Key updates include:

• Earlier eligibility to apply: Borrowers can now submit applications once construction is fully complete, all buildings have Certificates of Occupancy, and occupancy reaches 85 percent.
• Streamlined MAP waivers: Regional Directors now have the authority to:
  
  • Accept applications prior to achieving one month of DSCR underwritten NOI (MAP 3.7.2.B).
  • Approve closings after just one month of DSCR achievement, instead of the standard three months.
• Tailored debt service reserves: Reserve requirements should be no more than six months of debt service and can be adjusted based on lease-up performance, market strength, and borrower profile.
• More flexible reserve release: Rather than requiring six consecutive months of DSCR, HUD will now allow release of reserves based on average DSCR over a six-month period.

It’s important to note that no waivers will be permitted for DSCR or vacancy requirements outlined in Mortgagee Letter 2025-03.

A new leadership voice on the SMAC Board

We’re proud to announce that Jonathan Barany, SVP & Chief Underwriter for Walker & Dunlop’s FHA Finance group, has joined the SMAC Board. His appointment further strengthens our presence in the Southeast, a region that has been central to our growth as the #1 HUD lender.

As a member of the SMAC Board, Jonathan will be working closely with the Southeast HUD offices to spotlight areas of opportunity identified by lenders and help reinforce collaboration between HUD and our industry.

This board role enhances Walker & Dunlop’s ability to bring client-centric perspectives to HUD conversations and drive process improvements that serve both borrowers and communities.

Continuing the conversation

The 2025 SMAC Conference served as a critical touchpoint for the multifamily lending industry. With HUD showing a commitment to increased flexibility and with new voices like Jonathan’s helping guide the conversation, we’re optimistic about the road ahead.

Want to explore how these HUD updates might impact your project? Connect with our HUD team to learn more.