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15.5 Settlement Agreements

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States

A. The Director of COB may negotiate settlement agreements with MAP Lenders to resolve enforcement actions. Settlement negotiations may occur before or after the issuance of a Warning Letter or any other sanction. Before COB has recommended a MAP Lender to the MAP Lender Review Board for possible probation, suspension or termination, the DAS for Multifamily Housing or his/her designee may approve a settlement agreement. After COB has recommended a MAP Lender to the MAP Lender Review Board for possible probation, suspension or termination, only the Review Board may approve a settlement agreement.

B. Settlement agreements may be appropriate for the following situations:

  1. Cessation of any violation.

  2. Correction or mitigation of the effects of any violation.

  3. Removal of Lender staff from positions involving MAP loan origination, underwriting and/or construction loan administration.

  4. Actions to collect monies wrongfully paid by the MAP Lender to a third party.

  5. Implementation or revision of a Quality Control Plan or other corrective measure acceptable to COB or the DAS for Multifamily Housing; and/or,

  6. Modification of the duration or provisions of any administrative sanctions COB or the DAS for Multifamily Housing deems appropriate.

C. A MAP Lender’s compliance with a settlement agreement will be evidenced by the Lender certifying its compliance with the conditions of the agreement and by COB determining that the Lender is in compliance with the conditions. A false statement that the Lender is in compliance constitutes a false certification and may constitute a violation of 18 U.S.C. § 1001.

D. Failure by a MAP Lender to comply with a settlement agreement may result in referral to the MAP Lender Review Board or the Mortgagee Review Board for probation, suspension or termination.

MAP Guide, March 2021 Go to beginning of Chapter 15

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Chapter 15 Oversight of MAP Program Requirements 15.6 Letters of Caution, Warning Letters or Sanctions

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▸Contents — HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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