www.hudclips.org 


U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410

November 28, 1984
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 84-25
     TO:  ALL APPROVED MORTGAGEES
     SUBJECT: Review by Direct Endorsement Mortgagees for
               Ineligible Program Participants
 
          To ensure the quality and integrity of the Direct
     Endorsement program, the Office of the Inspector General will
     begin mailing the Consolidated List of parties debarred or
     suspended by HUD to all Direct Endorsement mortgagees.
 
          Suspension or debarment is an action taken against program
     participants who lack business responsibilities and, as such,
     are considered an unacceptable risk.  Their names are included
     in a Consolidated List published quarterly with monthly updates.
 
          Direct Endorsement mortgagees are to check loan
     applications, and if program participants shown on the
     application are suspended, debarred or ineligible, the
     application must not be processed.  If the mortgagee wishes to
     obtain permission to process such an application, all original
     documents must be forwarded to the appropriate Field Office.
     Approval to continue processing the application will not be
     given unless HUD, through the Assistant Secretary for Housing,
     determines it to be in the best interest of the Government.
     Approval will only be granted under extraordinary
     circumstances.
 
          This processing change is effective upon your receipt of
     the Consolidated List.  If you have any questions on these
     instructions, please contact the Single Family Development
     Division at (202) 426-7212. Additional information regarding
     suspension and debarment may be found in 24 CFR Part 24.
 
                                   Sincerely,
 
                                   Maurice L. Barksdale
                                   Assistant Secretary
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