2.6.4.1 Lender Owned FHA-Insured Properties

A. MAP Lenders with an equity or ownership interest in a property, either directly or through an affiliate, would have an IOI if they refinanced the property’s existing loan with a new FHA insured mortgage. This is not necessarily prohibited, so long as the MAP Lender complies with the requirements of this Chapter of the MAP Guide (for example, if the MAP Lender is affiliated with a tax credit equity investor or syndicator which will have a 99% ownership interest in the property), discloses to COB the relationship in writing prior to submitting the Firm Commitment application, and the loan terms and interest rate are commercially competitive at the time of the refinancing.