2.6.4.8 Prohibited Practices - Gifts

A. A prohibited IOI can be created when the MAP Lender, Borrower, or other parties to a MAP loan transaction solicit or accept gifts from prohibited sources based on their business relationship. Gifts less than $200 per year to an individual recipient are presumed not to constitute a prohibited IOI. A gift may not be conditioned on an agreement or obligation to do business related to a MAP transaction. Gifts given based on an existing business relationship outside of the MAP transaction, or incidental to commercially reasonable and customary marketing practices that are typical of FHA MAP Lenders, are not prohibited unless the value, amount or circumstances undermine, or give the appearance of undermining, the integrity and independence of the underwriting and credit review process. The MAP Lender’s QC Plan must address their policy on this topic.