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8.6.2 Principal Types

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. Two Principal types must receive HUD’s prior credit approval before submission of the application, if the REO portfolio exceeds a threshold (see next section):

  1. Principals normally subject to application-level mortgage credit underwriting as defined in Section 8.3.2.A and Section 8.3.2.C and Active Principals, defined as those member(s) of business entities which, if they suffered material negative financial or legal problems, would pose a risk to HUD.

  2. Investors participating exclusively as Passive Principals, as described in Section 8.3.2.D, except whose interest is not fixed or some form of continuing or contingent responsibility exists (e.g. a future equity investment obligation).

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▸Contents — HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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