11.2.1 Pre-application

A. The Lender's Underwriter must determine that the submission meets the requirements of this Guide and represents an acceptable risk to the insurance fund. The pre-application submission to the field office must include a Standardized Underwriter Narrative together with any additional information and all narrative attachments, which provide:

1. A summary of the relevant data and quantitative analysis.

2. Strengths, weaknesses, risks and mitigants.

3. A summary of programmatic eligibility and technical factors considered.

4. A description of the proposed project and the surrounding market conditions, including demand, extent of competition, vacancy rates, market absorption, details about features of the proposal (e.g., zoning, unusual site conditions, environmental) which may present potential problems, and any other information that would be useful to analyze the proposal.

5. A description of the individual or entity in control of the Borrower (plus General Contractor and Management Agent, if known), their qualifications, the identification of principals and a preliminary mortgage credit and creditworthiness review.

6. Explanations for any differences between the underwriting conclusions and the third-party due diligence.

7. List of proposed in-house and third-party reviewers of the application and their qualifications.

B. Further details on the required content of the Standardized Underwriter’s Narrative and the materials to be included in the pre-application can be found in this Guide and appendices.