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3.8.4 Lender Fees

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. See Chapter 18 for more detail. The one exception to the prohibition on inducements is the payment of prepayment penalties on an existing FHA insured loan from Lender’s profit. The Lender may pay such prepayment penalties on behalf of the Borrower, as long as disclosed to and approved in advance by HUD. Prepayment penalties payable by Lenders may include the cost of defeasance or penalties associated with

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Chapter 3 Programs 3.9 Property Insurance Requirements

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bond financing, or defeasance of other MBS (including Ginnie Mae securities), as long as the amount does not exceed 10% of the proposed FHA insured loan amount.

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