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