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c. Direct Endorsement Lender Review and Approval Process (10/15/2019)
i. Definition
Direct Endorsement Lender Review and Approval Process (DELRAP) refers to the review of a Condominium Project by a Mortgagee that has been granted DELRAP authority.
ii. Standard
DELRAP may be used for the Full Review, Recertification Review, or Phasing Review. The Recertification Review or Phasing Review must be completed by the same Mortgagee that previously approved the Condominium Project. DELRAP may not be used for MHCPs, newly converted Condominium Projects or any project that has completed a Resolution of Financial Distress Event within the past 36 months.
If the DELRAP review indicates that the Condominium Project is ineligible, the Mortgagee must complete the review and enter the denial decision and data into FHAC.
If the Mortgagee starts a review for a Condominium Project, the Mortgagee must complete review.
A Mortgagee with DELRAP authority may submit a Condominium Project for approval under HRAP.
iii. Submission Process
FHAC is the system used to record, list and track all data for Condominium Projects that have been processed. FHAC is used for data entry, processing and reporting.
Mortgagees must use FHAC to:
• determine the existing approval status of a Condominium Project;
• enter the Condominium Project information;
• assign the approval status after the Condominium Project has been reviewed; and
• upload required Condominium Project documents in a PDF.
The Mortgagee must retain all documentation related to the Condominium Project’s DELRAP review for a period of seven years and must provide the Condominium Project information and documentation to HUD/FHA upon request.
Mortgagees with Conditional DELRAP Authority must also follow the guidance in Conditional DELRAP Authority.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT C. Condominium Project Approval
3. Project Approval Submission