24 C.F.R. § 200.1540
§ 200.1540 Imminent harm notice of action. (24 CFR Part 200)
Operative Text
The Board may issue an imminent harm notice of action to terminate a MAP lender, or to place a MAP lender on probation or suspension without advance notice to the MAP lender in those instances where the Board determines there exists a need to protect the financial interest of HUD from imminent harm. In all such instances, the Board shall notify the lender of the Board's decision promptly and give the reasons for the decision in accordance with § 200.1535(g)(2) and (3). The lender shall have the right to submit materials to the Board and to appear before the Board to seek prompt reconsideration of the Board's decision in accordance with the procedures of § 200.1535.
Under 24 CFR § 200.1540, a federal oversight Board has the authority to take immediate disciplinary action against a MAP lender—including termination, probation, or suspension—without giving that lender prior notice, when the Board determines that HUD's financial interests face imminent harm. Once such action is taken, the Board must promptly inform the lender of its decision and the reasons behind it. The lender retains the right to submit materials and appear before the Board to seek reconsideration of the decision through the procedures outlined in § 200.1535.
Plain English — not legal advice.
MAP lenders operating under 24 CFR § 200.1540 should be aware that the Board can act swiftly and without advance warning to suspend, place on probation, or terminate a lender's MAP status when imminent harm to HUD's financial interests is identified. Compliant MAP lenders generally maintain thorough documentation of their underwriting practices and organizational conduct so that, if a notice of action is issued, they are positioned to respond promptly. Upon receiving an imminent harm notice, a lender has the right to present materials and appear before the Board to seek reconsideration under the procedures of § 200.1535.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While 24 CFR § 200.1540 primarily governs the federal oversight of MAP lenders rather than individual tenants, borrowers or residents in HUD-assisted properties may be indirectly affected when a lender faces sudden termination, suspension, or probation under this provision. If you believe a lender's disciplinary status is affecting your housing situation, tenant-rights organizations or HUD's own resources can help clarify what protections may apply. Understanding that § 200.1540 includes a reconsideration process for lenders can also provide context when navigating any disruptions to HUD-backed financing that may affect your housing.
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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