MAP Lender Exhibits

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Invitation for Multifamily Accelerated Processing Approval

HUD invites FHA-approved multifamily mortgagees to apply to HUD Headquarters for

approval as lenders authorized to process and submit pre-applications and FHA Firm

Commitment applications under Multifamily Accelerated Processing (MAP).

MAP is a national “fast track” processing system for the FHA multifamily mortgage

insurance programs. It provides a standard system to replace the varying “fast-track”

systems used in many, but not all, HUD Multifamily HUBS and Program Centers. MAP

makes the lender responsible for preparation of most of the exhibits, such as the appraisal

required for an application for mortgage insurance, and for making a recommendation to

HUD based upon the Lender’s processing and underwriting. HUD reviews the Lender’s

exhibits and makes the final underwriting decision.

To be approved for MAP, an FHA-approved multifamily mortgagee must apply and be

approved by HUD Headquarters as a MAP Lender. Lender approval requirements are

contained in Chapter 2 of the MAP Guide and the application exhibits for MAP Lender

approval follow this invitation. The MAP Guide, dated March 15, 2002 is on the web at

http://www.hud.gov/offices/hsg/mfh/map/mapguide/mapguide.cfm. The list of lenders

currently approved for MAP processing in on the web at

http://www.hud.gov/offfices/hsg/mfh/map/aprvlend.pdf.

As set forth in the MAP Guide, all underwriters employed by MAP-approved Lenders

will be required to attend HUD training before they can submit a pre-application package

or firm commitment application under MAP.

HUD Headquarters Office of Multifamily Development will be accepting applications for

MAP Lender approval on an ongoing basis. Review and approval or disapproval will

take approximately 30 to 45 days from the date the Lender application is received. Two

copies of the application should be submitted to:

Office of Multifamily Development

Room 6134

HUD Building, 451 Seventh Street, SW

Washington, DC 20410

If you have questions on the MAP Lender approval process, please call Sharon N.

Thomas at (202) 708-0614, extension 2607 or email Sharon.N.Thomas @hud.gov. or Mary B. Wade at (202) 708-0614, extension 2511 or email Mary. B. Wade @hud.gov.

MAP Lender Approval Exhibits

OMB No 2502-0541 (Exp. 2/29/04)

This collection of information necessary for the Department to determine whether or

not the applicants have the necessary qualifications and experience to handle the

additional duties and responsibilities of a MAP Lender. The submission of the

information is mandatory for all applicants who wish to be MAP approved. Public

reporting burden for this collection of information is estimated to average 20 hours per

response, including the time for reviewing the instructions, collecting the data on multifamily loans originated and assigned and preparing the resumes and the narrative statement on operations, and preparing the Quality Control Plan. Estimated number of applicants is 25. The information requested will be used solely to determine the eligibility of the applicant to become a MAP Lender. The information will not be disclosed outside the Department without prior consent except as required or permitted by law. The following will appear on the Notice for the Quality Control Plan as well as on the MAP Guide:

This agency may not collect this information and you are not required to complete this form unless it displays a currently valid OMB control number.

Exhibit A Name of applicant, address, employer identification number, contact

person or persons, telephone and fax number, e-mail address, branch offices for

multifamily business with address, telephone and e-mail address.

Exhibit B List of names and titles of those who are authorized to bind the Lender

in matters involving the application, underwriting and origination of insured mortgages

under MAP.

Exhibit C Type of mortgagee, (e.g., supervised or non-supervised) type of legal

structure (e.g., general corporation, limited liability corporation, partnership, housing

finance agency or other), whether or not a subsidiary of another company and, if so,

identification of the parent company.

Exhibit D Copy of letter of approval/HUD approved Form 92001 or Form 11701 evidencing approval as an FHA approved multifamily mortgagee as well as the copy of the most recent Yearly Verification Report submitted to the Lender Approval Division.

Exhibit E Copy of the most recent financial statements submitted to HQ Lender

Approval Division (not applicable to supervised mortgagees).

Exhibit F Narrative discussion of the applicant’s method of operation in

multifamily lending. This would include whether or not it acts as a mortgage banker

servicing loans, or an originator selling commitments or loans to others, whether it

originates or holds loans in its portfolio or purchases loans from others, or both,

experience in construction loan administration, the number, location and staffing of

branch offices it operates, and any other information the applicant deems relevant in

providing a clear picture of its business.

Exhibit G Experience of the applicant in multifamily loan origination, both

conventional and FHA insured. List the FHA insured loans for which applicant has

received firm commitments in the last 5 years and the number, name, location, original

amount, HUD office where processed and whether or not the loan is in default, an

election to assign the loan to FHA for insurance benefits has been filed or the loan has

been assigned to FHA. The extent of conventional lending may be summarized rather

than listing each conventional mortgage originated in the last 5 years. It is important to

cover in the summary the extent of conventional multifamily experience, the estimated

extent to which construction loan financing was involved and the number and percentage

of defaults and foreclosures. If an FHA or conventional loan was sold since origination

and is serviced by another Lender, please list it. Please report, if you know, whether or

not the sold loan is in default, foreclosure or if assigned to FHA for insurance benefits.

Default for these purposes means a loan whose payment is more than 60 days overdue.

Exhibit H Narrative discussion explaining any elections to assign FHA loans for

insurance benefits where initial endorsement of the FHA loans occurred after

May 1, 1995.

Exhibit I Resumes of the staff who will be responsible for the applicant’s

submission of a MAP loan application which demonstrate that the staff has the required

multifamily experience. Underwriter(s) must evidence a minimum 3 years recent

experience, worked regularly in the multifamily lending business and underwritten at

least 3 loans which have actually been funded. If multifamily experience is all

conventional, provide evidence of understanding of FHA multifamily mortgage insurance

origination requirements. For Health Care applications, the underwriter must have within the previous 5 years experience in underwriting the development and operation/management of health care facilities.

Exhibit J Experience in construction loan administration if intending to perform

construction loan administration. Identify those persons authorized to sign advances,

construction change orders and escrow releases.

Exhibit K Information regarding:

1. lawsuits/claims/judgments filed or issued in the last 3 years against the applicant, (a)

which concern equal employment or Lender discrimination prohibited by law or (b)

which are a result of, or might affect significantly affect its multifamily lending

business. Include the name of the lawsuit and potential liability.

2. any criminal charges brought against the applicant related to the mortgage lending

business.

Exhibit L Certification by the Lender that it will certify with each preapplication

and application for mortgage insurance that it is in compliance with the identity of

interest provisions in the MAP Guide which will provide that: “No financial or family

relationship is permitted between an officer, director or partner of the MAP Lender, its

principal staff or contract employees working on a particular application and an officer,

director or partner of the sponsor, the mortgagor, the principals of the mortgagor, the

general contractor, subcontractors or seller of the land or property.”

Exhibit M Agreement that the Lender will open its files and records on FHA

applications to monitoring by HUD staff, including the Office of Inspector General.

Exhibit N The Lender’s Quality Control Plan. Guidelines for preparing the Quality Control Plan may be found in Appendix 2 of the MAP Guide.

Exhibit O Certification by the Lender that it will provide an annual certification identifying MAP approved underwriters, construction loan administrators and persons authorized to bind the Lender on MAP loan applications. The annual certification must also state that all MAP underwriters have attended MAP training and the MAP Lender is currently a HUD approved multifamily mortgagee.