15.1 Oversight of MAP Lenders

A. This chapter of the MAP Guide implements 24 CFR Part 200, Subpart Y which provides the authority for enforcing MAP program requirements and imposing MAP sanctions.

B. By permitting a MAP Lender to prepare much of the documentation for an application submission for mortgage insurance, HUD places confidence in and relies on the Lender’s integrity and competence. HUD and its MAP Lenders have a mutual interest in ensuring the expertise of any Lenders which are authorized to represent the MAP program, and their compliance with the MAP Guide and other relevant guidance and handbooks. If, in the process of performing its work, a MAP Lender places HUD at undue risk, HUD will issue a Letter of Caution, a Warning Letter or will sanction the Lender.

C. Every HUD multifamily staff member plays an important role in the MAP Quality Assurance (QA) effort. This chapter provides QA and enforcement guidance to HUD production offices and the Office of Multifamily Production (OMP). Such QA and enforcement tools are: 1) Letters of Caution; 2) Warning Letters, which may include the imposition of Targeted Enforcement Measures; 3) Probation; 4) Suspension; 5) Termination; 6) suspension, debarment or Limited Denial of Participation (“LDP”) of individuals or firms participating in the MAP program; and 7) referral to the MAP Lender Review Board, the Mortgagee Review Board, the Departmental Enforcement Center (DEC) or the Office of Inspector General. An LDP is a sanction applied to persons and participants in loan transactions, other than to MAP Lenders themselves, under procedures set forth in 2 CFR Part 2424 Subpart J. The purpose and authority of the MAP Lender Review Board is set forth in this chapter. The purpose and authority of the Mortgagee Review Board is set forth in 24 CFR Part 25.

D. If a MAP Lender, or an authorized employee or Agent of the Lender acting under the control and supervision of the Lender, violates any program requirement including, but not limited to, committing fraud, misrepresentation or any violation described at 24 C.F.R. §§ 25.6 or 30.35(a), HUD reserves its rights to initiate all actions available to it under the law including, without limitation, action against the Lender under the contract of mortgage insurance and the Mortgagee Review Board authorities.