Question 10 on page 5 is clear with respect to what happens if someone pops up on the database. Q7, Q8 and Q9 are good to know as well.

The Bad List (attachment: How One Get’s On FHA’s BAD LIST)

Not that you want to be on this list but someone (me) wanted to know how one gets on the list.

NOTE: Below are the information sites to clarify your concerns/questions on the database information; reminder that this is FHA only FNMA has not issued guidance on this issue.

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4155.1/41551c2HSGH.pdf

2-5 ELIGIBILITY FOR FEDERALLY-RELATED CREDIT. A borrower must be rejected if any of the following conditions apply:

A. HUD Limited Denial of Participation (LDP) and the U.S. General Services Administration’s “List of Parties Excluded from Federal Procurement and Non-Procurement Programs” (GSA List) A person suspended, debarred, or otherwise excluded from participation in the Department’s programs is not eligible to participate in FHA-insured mortgage transactions. The lender must examine HUD’s LDP list and the government-wide General Services Administration’s (GSA) “List of Parties Excluded from Federal Procurement or Nonprocurement Programs” and document this review on the HUD 92900-WS/92900-PUR. If the name of the borrower, seller, listing or selling real estate agents, or loan officer appears on either list, the application is not eligible for mortgage insurance. A lender may check HUD’s LDP list by going to www.hud.gov and the Federal government’s list of excluded parties by going to http://epls.arnet.gov. (An exception shall be made for a seller on the GSA list when the property being sold is the seller’s principal residence.)

 

http://www.stfrancismortgage.com/elf/FH/FHU1.htm

HUD Limited Denial of Participation (LDP) and the U.S. General Services Administration’s “List of Parties Excluded from Federal Procurement and Nonprocurement Programs” (GSA List)

  • A person suspended, debarred, or otherwise excluded from participation in the Department’s programs is not eligible to participate in FHA-insured mortgage transactions.
  • The lender must examine HUD’s LDP list and the government-wide General Services Administration’s (GSA) “List of Parties Excluded from Federal Procurement or Nonprocurement Programs” and document this review on the HUD 92900-WS/92900-PUR.
  • If the name of the borrower, seller, listing or selling real estate agents, or loan officer appears on either list, the application is not eligible for mortgage insurance.

A lender may check HUD’s LDP list by going to www.hud.gov and the Federal government’s list of excluded parties by going to http://epls.arnet.gov. (An exception shall be made for a seller on the GSA list when the property being sold is the seller’s principal residence.)

 

The Meredith Mortgage Team, CMPS®

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meredithteam@cmgmortgage.com

emeredith@cmgmortgage.com

 

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