FHA 232 LEAN Loans

Inspired by Toyota's manufacturing principles, "Lean" processing addresses some long touted concerns over HUD's processing and closing timeframes. The processing procedures differ from the Agency’s MAP program in that the actual closing work begins upon submission of a complete loan package. The goal is for a closing within 30 days of receipt of a complete loan package to HUD. "Lean" is being piloted via HUD's Office of Insured Health Care Finance program. This new processing and closing process showcases HUD's solid mindset for continuous improvement to their loan programs.

With a MAP loan, the closing begins after the receipt of the HUD Firm commitment. While LEAN is about—standardized, accurate and thorough work product, With standardized work product time frames are reduced, and the outcome is more predictable and reliable.

The Lean Process added consistency for HUD as the lender and the lender and HUD are looking for all the documents completted, checked and orgainzed, prior to the submission to HUD.