15.10 MAP Termination

A. MAP Lenders which fail to maintain a minimum level of MAP activity, defined as failing to submit either a MAP or Section 232 LEAN pre-application package or a Firm Commitment application at least once every 12 months, may be terminated from the MAP program, in accordance with 24 CFR 200.1520(b).

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Chapter 15 Oversight of MAP Program Requirements 15.11 MAP Lender Review Board

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Otherwise, only the MAP Lender Review Board may terminate a Lender’s eligibility for MAP. Termination applies to all MAP programs.

B. A terminated MAP Lender may not submit, and a HUD production office may not accept, materials after the close of business on the date of the termination letter, for a new pre-application or Firm Commitment application.

C. A MAP pre-application or Firm Commitment application already in process may no longer be processed by the terminated Lender. The Lender must immediately transfer the transaction to a new MAP Lender which must completely reprocess all stages of the application. Alternatively, the terminated Lender may cancel the application and return to the Borrower its information, application submissions and any deposits. At no time may the new or a subsequent MAP Lender assign the pre-application, the Firm Commitment application, the mortgage insurance commitment or the insured construction loan to the terminated Lender.

D. HUD will endorse a MAP loan processed by a terminated Lender only if the Firm Commitment was issued before the date of the termination letter and only if it is first transferred to a new MAP Lender. At no time may the new or a subsequent MAP Lender assign the pre-application, the Firm Commitment application, the mortgage insurance commitment or the insured construction loan to the terminated Lender. For construction loans that have been initially endorsed at the date of termination, the terminated MAP Lender may not continue to administer the construction loan and HUD will assume all construction loan administration duties.

E. The terminated MAP Lender may not service a loan it has transferred after Final Endorsement.

F. Termination will be in effect nationwide and the Lender’s name shall be removed from the MAPApproved Lender list.

G. In accordance with the sanction and notice procedures of this chapter, the Notice of Action terminating a Lender will be:

1. Sent electronically and by overnight delivery.

2. Addressed to the MAP Lender’s contact person as listed on the MAP website.

3. Signed for by an employee of the MAP Lender upon receipt.

H. An application for reinstatement of MAP lending authority may not be submitted to COB until 12 months after the date of termination. The requirements for reinstatement will be the same as for initial qualification as a new MAP Lender under MAP Guide Chapter 2 and the applicant must satisfy COB that the issues or problems that led to its termination have been resolved.