HUD LEAN is a streamlined method of processing HUD 232 applications patterned after Toyota’s operational processes. This program has been able to significantly reduce processing times. As a result, some HUD 232 loans can take as little as 4 months to close.
Some of the main "LEAN" changes over the previous method are:
Standardized checklists, certifications, statements of work for third-party work, and lender templates for the application package.
Standardized punch-lists used by HUD staff in underwriting.
The removal of duplicate and unnecessary portions of the application process and requirements. For example, closing-related documents submitted with the Firm Application don’t need to be submitted later in the process as well.
Revised third-party appraisal requirements. Lean appraisals are market appraisals eliminating the need to use HUD forms.
No proprietary earnings carve out.