Refinancing Hospital Loans

Alastair McFarlane
U.S. Department of Housing and Urban Development

Impact
A regulatory impact analysis must accompany every economically significant federal rule or regulation. The Office of Policy Development and Research performs this analysis for all U.S. Department of Housing and Urban Development rules. An impact analysis is a forecast of the annual benefits and costs accruing to all parties, including the taxpayers, from a given regulation. Modeling these benefits and costs involves use of past research findings, application of economic principles, empirical investigation, and professional judgment.

When the credit crisis developed, the Federal Housing Administration (FHA) allowed non-FHA-insured hospitals to refinance capital debt. FHA permitted the refinancing of non-FHA-insured loans under notices issued on July 1, 2009, and February 22, 2010. This final rule revised the regulations governing FHA's Section 242 Hospital Mortgage Insurance Program to codify the refinancing of non-FHA-insured loans.