15.8 MAP Probation

A. Only the MAP Lender Review Board may place a Lender on probation. Probation may be imposed for all MAP programs or only for specific programs, depending on the Lender’s offense that was the basis for the probation sanction. Probation is intended to be remedial and not punitive, and to be in effect only until the required corrective action(s) has been implemented by the Lender. Release from probation will usually be conditioned on the Lender taking an action to address or remedy the problems or deficiencies that led to the sanction or on meeting specific requirements, such as replacing a staff member or closing a branch office, to HUD’s satisfaction and in its sole discretion.

B. During the probation period, a MAP Lender may not submit, and a HUD production office may not accept, materials after the close of business on the date of the probation letter, for a new pre-application or Firm Commitment application for all MAP programs or for just the programs that were the subject of the probation action. If either a new pre-application or Firm Commitment application is received after the date of the probation Notice of Action, it must be returned to the MAP Lender.

C. During the probation period, a Lender may continue to process any pre-application or Firm Commitment application that was submitted to a HUD production office before the date of the probation Notice of Action, unless one or more active applications are specifically suspended as noted in the Notice of Action.

D. Probation continues until all corrective actions required by COB or the MAP Lender Review Board have been taken by the MAP Lender and the Lender has notified COB of the actions’ implementation. Once COB is satisfied that the corrective action(s) have occurred and are effective, the probation period shall end. A false statement that corrective action has been taken constitutes a false certification and may constitute a violation of 18 U.S.C. § 1001. A Lender’s failure to continue or maintain the corrective action(s) after Probation has ended may be the basis for Suspension or Termination.

E. Probation will be in effect nationwide and the Lender’s name shall be removed from the MAP-Approved Lender list for all MAP programs or for just the programs that were the subject of the probation Notice of Action. When probation has ended, the Lender’s name shall be re-posted to the list.

MAP Guide, March 2021 Go to beginning of Chapter 15

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 15 Page 15-8

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 15 Oversight of MAP Program Requirements 15.9 MAP Suspension

Go to Table of Contents

F. In accordance with the sanction and notice procedures of this chapter, the Notice of Action placing a Lender on probation will be:

1. Sent electronically and by overnight delivery.

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

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