Must the lender check the LDP and GSA lists for a HECM purchase loan?

Yes, lenders must examine HUD’s Limited Denial of Participation List (LDP) and the General Services Administration’s (GSA) Excluded Parties List System (EPLS) to determine if the name of any party to the transaction including, but not limited to, the seller, real estate agent, or builder, appears on either list.

The reverse mortgage will not be eligible for mortgage insurance if the name of any party to the transaction appears on either list.

GSA/EPLS has been migrated into the System for Award Management (SAM) located at https://www.sam.gov/

SAM is supported by the Federal Service Desk (FSD) at https://www.FSD.gov

Limited Denial of Participation
https://www.hud.gov/topics/limited_denials_of_participation

Mortgagee Letter 2009-11 is available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04873