15.18 Referral to Mortgagee Review Board or OIG

A. If the Director of COB or the DAS for Multifamily Housing determines there is adequate evidence of serious violations of HUD requirements by a MAP Lender, then the Director of COB or the DAS for Multifamily Housing may refer the Lender to the Mortgagee Review Board for possible sanctions, including possible termination of the Lender’s authority as an FHA-approved mortgagee, without first issuing a Warning Letter or other sanction, or first referring the MAP Lender to the MAP Lender Review Board. If a HUD production Director determines there is adequate evidence of serious violations of HUD requirements by a MAP Lender, the Director may refer the Lender to COB or to the DAS for Multifamily Housing, who will determine if the matter should be referred to the Mortgagee Review Board. See Section 2-4, Requests for Mortgagee Review Board Action, HUD Handbook 4060.2 REV 2, Mortgagee Review Board, and HUD Regulations at 24 CFR 25.

B. If the Lender issue involves possible fraud, material misrepresentation or other criminal violations, then the matter should be referred to the Office of Inspector General (OIG). See Section 3-1, Responsibilities of Departmental Management and Employees, OIG Handbook 2000.3 REV-4, Office of Inspector General Activities.