The risks associated with underwriting include the potential for lenders to make mistakes in their assessment of a borrower's credit, capacity, and collateral. Additionally, if a borrower does not have a history of owning and managing similar properties, they may not be approved for a loan. For HUD multifamily loans, such as HUD 221(d)(4) and HUD 223(f) loans, the underwriting process is more rigorous and the risks are higher. For HUD 223(a)(7) loans, the underwriting process is less rigorous and the risks are lower.