24 C.F.R. § 200.1520
§ 200.1520 Termination of MAP privileges. (24 CFR Part 200)
Operative Text
(a) In general. Except as provided in paragraph (b) of this section, only the MAP Lender Review Board may terminate a lender's MAP privileges, in accordance with the procedures of § 200.1535. (b) Administrative termination. HUD will notify a lender of immediate termination of MAP privileges when either of the following circumstances is present: (1) Failure by the MAP lender to maintain its status as an FHA-approved lender; or (2) Failure by the MAP lender to maintain a minimum level of MAP lender activity, as evidenced by failure to submit either a pre-application package or firm commitment application at least once every 12 months. (c) Effect of termination. (1) The terminated lender shall be removed from the MAP-Approved Lender list on HUD's Web site. (2) A terminated lender may not submit, and the HUD field office may not accept, materials after the close of business of the date of the termination letter for new multifamily mortgage insurance from HUD. (3) Any MAP pre-application or MAP application in process may no longer be processed under MAP by the terminated lender. The lender will either: (i) Immediately transfer the transaction to the traditional application processing (TAP) procedure. HUD will completely reprocess all stages of the transaction; or (ii) Immediately transfer the project to a new MAP lender. The new MAP lender must completely reprocess all stages of the transaction. At no time can the new MAP lender assign the pre-application, the firm application, the mortgage insurance commitment, or the insured construction loan back to the original MAP lender. (4) HUD will not endorse any MAP loan processed by the terminated lender unless a firm commitment was issued before the date of termination. (i) Firm commitments involving new construction or substantial rehabilitation must be immediately transferred to a new MAP lender. At no time can the new MAP lender assign the firm mortgage insurance commitment, or the insured construction loan, back to the original MAP lender. (ii) Firm commitments issued for Section 223(f) projects may be transferred before final endorsement to any approved FHA lender or kept in the lender's portfolio. (iii) For those construction loans that have been initially endorsed, the MAP lender will lose its MAP privileges for construction loan administration. HUD will assume all the construction loan administration duties it normally performs for TAP processing. (iv) The original lender may service a transferred loan once it is finally endorsed. (5) Termination is nationwide in effect. (6) When a MAP lender loses its MAP lender status as a result of termination, the lender's status to process transactions using TAP is unaffected, provided that the lender has maintained its status as an FHA-approved multifamily lender. (d) Reinstatement. An application for reinstatement of MAP authority may not be made until at least 12 months after the date of termination. The requirements for reinstatement shall be the same as for initial qualification, and the applicant must show that the problems that led to termination have been resolved.
Section 200.1520 governs how and when a lender's authority to participate in HUD's Multifamily Accelerated Processing (MAP) program can be ended. Termination can occur either through a formal review by the MAP Lender Review Board or automatically by HUD when a lender loses its FHA-approved status or goes 12 consecutive months without submitting a qualifying application. Once terminated, the lender is removed from HUD's approved list, cannot submit new applications, must transfer or convert any in-progress transactions, and cannot apply for reinstatement for at least 12 months.
Plain English — not legal advice.
Property owners and developers pursuing HUD-insured multifamily financing should be aware that under § 200.1520, a MAP lender's termination triggers mandatory mid-transaction transfers that can significantly affect project timelines. Compliant operators working with MAP lenders generally monitor their lender's active status on HUD's MAP-Approved Lender list before and during the application process. If a lender is terminated mid-transaction, the project must be fully reprocessed—either through traditional application processing (TAP) or by a newly engaged MAP lender—which means operators typically maintain documentation of all prior processing stages to facilitate a smooth handoff.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While § 200.1520 primarily governs lender relationships with HUD rather than tenant rights directly, tenants living in or seeking housing in HUD-insured multifamily properties may be affected when a MAP lender termination disrupts financing for a project. Understanding that termination under this provision is nationwide in effect and can stall or restructure a project's financing helps tenants contextualize delays or ownership changes they might observe. Tenants with concerns about how a lender termination is affecting their housing situation can reach out to their local HUD field office or a tenant-rights organization familiar with FHA-insured multifamily housing for general information.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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