2.7 New MAP Lender Application Package

A. A new Lender’s MAP application should be submitted to COB electronically in PDF format. There is no specific required application form for approval as a MAP Lender, but the information submitted must include the following exhibits:

1. Exhibit A: Provide the name of applicant, address, employer identification number, contact person or persons, telephone and fax number, e-mail address, branch offices for multifamily business with address, telephone and e-mail address, and the FHA Mortgagee ID Number.

2. Exhibit B: List the names and titles of those who are authorized to bind the Lender in matters involving an application, underwriting and origination of insured mortgages under MAP

3. Exhibit C: Describe the type of FHA-Mortgagee (e.g., supervised or non-supervised), type of legal structure (e.g., general corporation, limited liability corporation, partnership, Housing Finance Agency or other), whether the Lender is a subsidiary of another company, and if so, identification of the parent company.

4. Exhibit D: Provide a copy of most recent financial statements submitted to HUD’s Office of Lender Activities and Program Compliance, Lender Approval and Recertification Division (not applicable to supervised mortgagees).

5. Exhibit E: Describe in the narrative the applicant’s method of operation in multifamily lending. This will include whether it: a) services loans; b) is an originator that sells commitments or loans to others; c) originates and holds loans in its portfolio; d) purchases loans from others; and, e) has experience in construction loan administration. Also include the number, location and staffing of branch offices it operates and any other information the applicant deems relevant in providing a clear description of its business.

6. Exhibit F: Describe the experience of the Lender in multifamily loan origination, for both conventional, GSE and FHA-insured loans. List the FHA-insured loans for which the Lender has received Firm Commitments in the last 5 years, the number, name, location, original amount, HUD Office where processed and whether the loan is in default has been assigned, or an election to assign the loan to FHA has been filed, or the Lender has elected to foreclose on the loan. The extent of conventional lending may be summarized rather than listing each conventional mortgage originated in the last 5 years. It is important to summarize the extent of conventional multifamily experience, the extent to which construction loan administration was involved and the number and percentage of defaults and foreclosures. List any FHA or conventional loan that was sold since origination and is serviced by another Lender and report on whether the sold loan is in default, foreclosure or has been assigned to FHA. Default for these purposes means a loan whose payment is more than 60 days overdue.

7. Exhibit G: Explain in detail any elections to assign FHA loans for insurance benefits for any Initial Endorsements that occurred after May 1, 1995.

8. Exhibit H: Provide resumes of the staff who will be responsible for the submission of MAP loan applications demonstrating that the staff have the required multifamily experience.

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9. Exhibit I: Describe experience in construction loan administration, if the applicant intends to perform this function. Identify those persons authorized to sign advances, construction change orders and escrow releases.

10. Exhibit J: Provide a detailed description of the following:

• Lawsuits/claims/judgments filed or issued in the last 5 years against the applicant, its officers or principals, or its Chief or Deputy Underwriter(s) which:

• 1. Concern equal employment or Lender discrimination prohibited by law, or
• 2. Are a result of, or might significantly affect, its multifamily lending business.
  • Any criminal matters or civil complaints that impugn the character or compromise the integrity of the applicant, its officers or principals, or its Chief or Deputy Underwriter(s).

11. Exhibit K: The Lender must represent that it will certify with each pre-application submission and application for mortgage insurance that it is in compliance with the provisions of the MAP Guide concerning Identities of Interest and conflicts of interest among participants in a loan transaction.

12. Exhibit L: The Lender must state that it will open its files and records on all FHA applications for monitoring by COB, the Departmental Enforcement Center and the Office of Inspector General.

13. Exhibit M: The Lender must submit a Quality Control plan for underwriting insured mortgages processed under MAP and when applicable, for construction loan administration for such insured mortgages.

14. Exhibit N: Provide a copy of the Letter of Approval evidencing approval as an FHA Approved Mortgagee.