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Appendix 2 Quality Control Plans and Identity of Interest

A.2.2.1.2 Bridge Loans and Balance Sheet Loans

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. An affiliate of a MAP Lender made a short-term loan to a Borrower on a property with a cap rate of 3 in a strong market. The market crashed, cap rates went up dramatically and vacancy rates skyrocketed. The Borrower was not able to pay the debt off when it matured and it was extended indefinitely with a high interest rate and unpaid amounts accruing. The MAP Lender has a conflict of interest in the

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Appendix 2 Quality Control Plans and Identity of Interest A.2.2 Identity of Interest Examples

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property’s valuation and thus has an IOI. The MAP Lender must disclose the relationship in the underwriting to COB and particular attention will be paid to the valuation analysis.

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

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