4.3.1 General Requirements

A. Borrower Engagement letters are expected as a prudent business practice, but not regulated by HUD. Only one MAP Lender may be engaged at a time. If Borrower changes MAP Lenders prior to or after submission of an application, the Borrower must disclose the processing history, and the MAP Lender submitting the application must address it in the Underwriter Narrative Executive Summary.

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Chapter 4 Application Processing 4.3 Lender Processing

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B. Lenders must have a written contract (engagement letter) with Third Party reviewers; HUD recommends extension clauses as part of the contract.

C. Electronic submission of applications material, the Standard Underwriting Narrative and the LIHTC Summary Report (LIHTC transactions only), are required. Application checklists are in Appendix 4. HUD will continue moving to complete electronic submission and processing through a web-based portal.

D. MAP Lenders are required to comply with the procedures and management controls specified in their Quality Control Plans.

E. Pre-Approval of Principals with Large Concentrations of FHA Insured Debt. The Lender must perform a thorough mortgage credit and creditworthiness review, and obtain HUD approval, before submission of an application in cases where principals have greater than $500,000,000 of outstanding FHA insured debt. Borrowers previously approved for amounts between $250,000,000 and $500,000,000 must continue to obtain HUD approval upon expiration of any existing decision memo or when approval authority is exhausted, whichever first occurs. Please refer to Chapter 8, Section 8.8 for additional information.

F. Lenders may produce their own copies of HUD forms, as long as the recreated forms have the correct Office Management and Budget (OMB) numbers, HUD form numbers, OMB expiration dates, approval numbers, form titles, and are identical in content and order of the line items on the MAP Form. All forms must be completed subject to their respective instructions. See HUDClips:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms

G. A complete application submission includes one original, one additional hard copy and one electronic copy. The additional hard copy should be in a separately bound mortgage credit file, along with the rest of the application containing the exhibits that do not contain sensitive personal and Privacy Act protected information. A standardized underwriting narrative and more structured application checklist are now required as well.