A.12.5.1 General

A. Additional attention must be given to projects that are experiencing difficulties that may lead to default before reaching final closing. Diagnose problems and take immediate actions during critical periods of project construction to avoid foreclosure or assignment, and to avoid serious hardship to Borrowers, contractors, and mortgagees. See Chapter 19 for final closing procedures when the Borrower and General Contractor are in dispute and closing without full participation of the contractor.

B. Prompt action must be taken to correct problems as they arise. Where requested relief cannot be granted for statutory, regulatory or administrative reasons, however, a prompt and final disapproval must be given.