U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Washington, D.C. 20410-0050
LIMITED DENIALS OF PARTICIPATION
issued by HUD pursuant to
Title 2, Code of Federal Regulations, Part 2424, Subpart J
Departmental Enforcement Center
M E M O R A N D U M
TO: All HUD-approved Title I Lenders and Title II Mortgagees
FROM: James M. Beaudette, Director, Compliance Division,
Departmental Enforcement Center
SUBJECT: Distribution & Use of the LDP List
A Limited Denial of Participation (LDP) is an action taken by a
HUD Field Office or the Deputy Assistant Secretary for Single Family
(DASSF) or Multifamily (DASMF) Housing which excludes a party from
further participation in a HUD program area. The scope of the LDP
is limited to the geographic area of the office which sent the notice
to the party. DASSF & DASMF LDPs are effective nationwide unless
otherwise noted. An LDP generally expires in one year. A HUD "program
area" is as broad as the programmatic jurisdiction of an Assistant
Secretary. LDPs are issued to parties (individuals & companies)
who fail to comply with HUD program standards. In most cases, the
causes of an LDP action could be remedied by the party. LDP actions
include provisions for an appeal process with a speedy conference
at the HUD office which issued the LDP as the first step in that
process.
It is important that parties who have been issued an LDP be prevented
from new participation in the HUD program from which they have been
excluded within the jurisdiction which took the exclusion action:
1. If you detect new participation or attempted participation by
such parties in a program from which they have been excluded by
the local HUD office, immediately notify the local office and obtain
instructions before completing the processing of an application.
2. If you detect new or attempted participation by a party who
has been excluded from a different program from that of the current
application, notify the local HUD office but continue to process
the application because the party is excluded only from the program(s)
as shown on the LDP list. HUD must decide whether or not to attempt
to broaden the exclusion action.
3. If you detect new or attempted participation by a party who
has been issued an LDP by another HUD jurisdiction, notify the local
office but continue to process the application because the party
is not excluded unless the local HUD office issues its own action
based on the action by the other HUD office or based on its own
evidence.
The LDP List is available electronically through the FHA Connection,
the echo, AllRegs, Smart Regs and FISLACH mortgage industry information
systems.
In addition to the LDP list, the General Services Administration's
(GSA's) "Lists of Parties Excluded from Federal Procurement
or Nonprocurement Programs" (Lists of Parties) must be checked
to determine if individuals or companies are suspended or debarred
from further participation in HUD programs and throughout the Executive
Branch of the Federal Government. The Lists of Parties is accessible
through the Excluded Parties Listing
System (EPLS).
List of
LDP Parties