1.2 Purposes of MAP

A. The goal of MAP is to provide a consistent, expedited mortgage insurance application process at each HUD Multifamily Regional Center or Satellite Office. HUD no longer accepts new applications for the covered programs, either for Pre-application review or for Firm Commitment review, under local “fasttrack” processing. All MAP eligible projects must be submitted using MAP processing unless a waiver is granted to process under Traditional Application Processing (TAP). Such waiver approval authority is retained by HUD Headquarters’ Director of Multifamily Production.

B. Review of applications for TAP processing require more work and responsibility by HUD staff, and accordingly, a higher application fee may be charged. Projects not eligible for MAP, and which may be submitted under TAP, are:

1. Applications submitted by FHA approved multifamily Lenders who are not approved to submit MAP applications,

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2. Applications where there is an identity of interest between the Lender and the Borrower or affiliates of either, or

3. Applications for mortgage insurance under Programs or Sections of the Act not covered by MAP (e.g., Cooperatives under Section 213).

C. Some MAP approved Lenders (MAP Lenders) only originate loans and do not close or service them. After obtaining a Firm Commitment for mortgage insurance under MAP, the originating Lender may sell or transfer the Firm Commitment to another MAP Lender, so long as the MAP Lender closing the loan does not have an identity of interest with the Borrower on the loan. The second MAP Lender will close the loan, oversee the construction loan administration, if applicable, and service the loan in accordance with HUD requirements. At the Pre-application submission, the originating MAP Lender should inform the Regional Center or Satellite Office if it does not intend to service the loan or administer the construction loan. The originating MAP Lender must identify which MAP Lender will be responsible for those functions as soon as the closing/servicing MAP Lender is identified. The second MAP Lender must identify its construction loan administrator before or at initial endorsement. A Loan Servicer who receives a transferred MAP loan for servicing must be FHA approved for multifamily housing and have an approved Construction Loan Administrator, unless the loan is a refinancing with no repair escrow. The servicing Lender generally is, but is not required to be, a MAP approved Lender. See also Chapter 19, Section 19.2.4 of the MAP Guide for assignments post initial endorsement but prior to final endorsement.

D. MAP and the MAP Guide are intended to:

1. Increase HUD’s reliance upon the Lender’s due diligence and increase the MAP Lender’s accountability for its due diligence and underwriting.

2. Establish a uniform process that significantly reduces the amount of HUD review time.

3. Strike a careful balance between expedited processing and ensuring an acceptable level of risk management for HUD’s multifamily mortgage insurance programs.

4. Have in one volume, the MAP Guide, the basic information required for loan origination by the Lender and for review by HUD staff.

5. Bring Handbook and Notice instructions current and maintain up-to-date instructions through amendments to the MAP Guide.

6. Provide the Lender with predictable and consistent underwriting guidelines, thus facilitating efficient processing and better service for Borrowers.