FHA Single Family Housing Policy Handbook 4000.1, Part I — d. Title II Multifamily Accelerated Processing Authority (04/18/2023)

FHA Single Family Housing Policy Handbook 4000.1, Part I — d. Title II Multifamily Accelerated Processing Authority (04/18/2023)

d. Title II Multifamily Accelerated Processing Authority (04/18/2023) Title II Multifamily Accelerated Processing (MAP) authority permits Mortgagees to underwrite and close multifamily Mortgages for FHA insurance with FHA’s review prior to closing. The Office of Multifamily Housing grants this authority. Details on this authority are in the Multifamily Accelerated Processing (MAP) Guide 4430.G, which is available in HUD’s Client Information and Policy System (HUDCLIPS). e. Title II Direct Endorsement Lender Condominium Project Review and Approval Process Authority (10/15/2019) i. Scope of Authority Approval to participate in the Direct Endorsement Lender Review and Approval Process (DELRAP) permits a Mortgagee to review and approve Condominium Projects and submit the Condominium Project for listing on FHA’s Approved Condominium Project list. I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 5. Supplemental Mortgagee Authorities Handbook 4000.1 45 Last Revised: 11/26/2025 (A) Definitions (1) Conditional DELRAP Authority Conditional DELRAP Authority refers to the authority of a Mortgagee that has provided notice to FHA of its intent to participate in DELRAP and requires the Mortgagee to submit all Condominium Project Approvals to FHA for review. (2) DELRAP Test Case Phase The DELRAP Test Case Phase refers to the time period in which a Mortgagee with Conditional DELRAP Authority is required to submit Condominium Project Approvals to FHA for review. (3) Unconditional DELRAP Authority Unconditional DELRAP Authority refers to the authority of a Mortgagee to approve Condominium Projects in accordance with HUD requirements and submit the Condominium Projects for listing on FHA’s Approved Condominium Project list without any prior Condominium Project review by FHA. (B) Standard To obtain Unconditional DELRAP Authority, the Mortgagee must successfully complete the DELRAP Test Case Phase, which permits FHA to evaluate the Mortgagee’s qualifications, experience, and expertise to review and approve Condominium Projects. ii. Eligibility Requirements (A) Standard The Mortgagee must meet the following requirements to apply for and participate in FHA’s DELRAP. (1) FHA Title II Direct Endorsement Approval A Mortgagee must have FHA approval as a Title II Unconditional Direct Endorsement Mortgagee. (2) Mortgagee Experience The Mortgagee must have originated not less than 10 FHA Mortgages in Condominium Projects approved by the Commissioner. I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 5. Supplemental Mortgagee Authorities Handbook 4000.1 46 Last Revised: 11/26/2025 (3) Personnel Requirements The Mortgagee must have at least one staff member with a minimum of one year of experience underwriting Mortgages on Condominium Units and/or reviewing Condominium Projects for FHA approval and must ensure that staff members participating in the approval of Condominium Projects either: • meet the experience requirement; or • are supervised by staff that meet the one-year experience requirement. (4) Quality Control Plan The Mortgagee must have a QC Plan that includes specific provisions related to DELRAP. (B) Exception for Certain Mortgagees Created by Merger, Acquisition, or Reorganization Unconditional DELRAP Authority may be granted without the need for the DELRAP Test Case Phase following a merger, acquisition, or reorganization, provided that the following criteria are met: • The surviving FHA-approved Mortgagee or the FHA-approved Mortgagee resulting in a new FHA Lender ID was granted Unconditional DELRAP Authority prior to the merger, acquisition, or reorganization. • If both institutions have Unconditional DELRAP Authority, then the management and staff of at least one of the Mortgagees involved with the Mortgagee’s Unconditional DELRAP Authority prior to the merger, acquisition, or reorganization must continue to exercise those responsibilities for the new Mortgagee. • If only one institution has Unconditional DELRAP Authority, then the management and staff involved with that Mortgagee’s Unconditional DELRAP Authority prior to the merger, acquisition, or reorganization must continue to exercise those responsibilities for the new Mortgagee. iii. Application and Approval (A) First-Time Applicants (1) Application (a) Request to Enter DELRAP Test Case Phase The Mortgagee must apply for Unconditional DELRAP Authority by submitting a request to the FHA Resource Center at answers@hud.gov. I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 5. Supplemental Mortgagee Authorities Handbook 4000.1 47 Last Revised: 11/26/2025 (b) Required Documentation The Mortgagee must submit a letter signed by a Corporate Officer requesting entry into the DELRAP Test Case Phase that: • specifies the Mortgagee’s home office 10-digit FHA Lender ID; and • certifies that the staff has met the Eligibility Requirements prior to Conditional or Unconditional DELRAP Authority being granted. (2) Notification If the Mortgagee meets the requirements for DELRAP authority and submits the required documentation, FHA will advise the Mortgagee in writing that they may proceed with submitting Condominium Project Test Cases for review. (3) Test Case Process Mortgagees with Conditional DELRAP Authority must review the Condominium Project in accordance with the Condominium Project Approval requirements to determine if the Condominium Project meets FHA approval requirements. (4) Test Case Submission Requirements The Mortgagee must submit all Test Cases to the FHA Resource Center at answers@hud.gov. FHA will review these Test Cases for compliance with FHA’s Condominium Project Approval requirements. (5) Approval Decision (a) Approval of Unconditional DELRAP Authority The Mortgagee must satisfactorily complete a minimum of five DELRAP reviews with no more than one review being rated unacceptable. FHA may require less than five DELRAP reviews and will consider previous experience. The Condominium Project Test Cases must be submitted within a period of 12 consecutive months following the date of application, or such other extended time as determined by FHA, in order to be granted Unconditional DELRAP Authority. After the Mortgagee successfully completes the required Condominium Project Test Cases, the Mortgagee will be notified that they have been granted Unconditional DELRAP Authority. (b) Denial of Unconditional DELRAP Authority The Mortgagee will be denied approval for Unconditional DELRAP Authority if, at any time during the DELRAP Test Case Phase, FHA determines that the Mortgagee’s submissions demonstrate a lack of knowledge of FHA requirements, or FHA identifies unacceptable practices. I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 5. Supplemental Mortgagee Authorities Handbook 4000.1 48 Last Revised: 11/26/2025 (i) Denial Decision FHA will provide the Mortgagee with notice of a denial of Unconditional DELRAP Authority that specifies the reason for the denial. (ii) Denial Appeal The applicant may submit an appeal of the denial decision to the FHA Resource Center at answers@hud.gov with the following subject line: DELRAP Denial Appeal within 30 Days of the date of the denial. (iii) Informal Conference If the denial is sustained, the applicant may submit a second appeal to the Office of Single Family Program Development through the FHA Resource Center at answers@hud.gov. The Director or designee will conduct an informal conference with the Mortgagee and its counsel, if any, no later than 60 Days from the date of FHA’s initial denial of the appeal. (iv) Determination FHA will issue a determination following the informal conference stating whether Unconditional DELRAP Authority is approved or denied. (v) Reapplication following Denial If Unconditional DELRAP Authority is denied, the applicant is ineligible to apply for DELRAP Authority for a period of 12 months after the date of the original denial decision or the date of the informal conference sustaining the denial decision. (B) Applications from Mortgagees Created by Merger, Acquisition, or Reorganization (1) Standard The Mortgagee must apply for Unconditional DELRAP Authority by submitting a request to the FHA Resource Center at answers@hud.gov. (2) Required Documentation The Mortgagee must submit a letter signed by a Corporate Officer requesting Unconditional DELRAP Authority that specifies: • the FHA-approved and non-approved entities involved in the merger, acquisition, or reorganization; • which entity is the surviving entity; • the effective date of the merger, acquisition, or reorganization; and I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 6. Post-approval Operations Handbook 4000.1 49 Last Revised: 11/26/2025 • supporting documentation evidencing that the Mortgagee meets the exception criteria. (C) Post-approval Requirement (1) FHA Connection Authorization A Mortgagee approved for Conditional DELRAP Authority or Unconditional DELRAP Authority must register and maintain all Mortgagee employees designated to review/approve Condominium Projects in the Condominium Reviewer Registry function in FHAC. 6. Post-approval Operations

Source: FHA Single Family Housing Policy Handbook 4000.1, Part I — d. Title II Multifamily Accelerated Processing Authority (04/18/2023) · source URL · snapshot 8c03836f77f317e1