FHA Underwriting

sagarthakar · Joined: 15 May 2007 Posts: 68 26.01 Dollars($)

I believe that FHA follows TOTAL Scorecard to underwrite loans which has two responses REFER and ACCEPT.

1.) Only DE mortgagees with an AUS or Fannie DU or Freddie LP can directly
interface with the TOTAL Scorecard.

2.) The FHA Sponsor ID (lenders who do not have a FHA DE Lender approval)
and a Lender/Originator ID number must be entered correctly or TOTAL
will electronically render an error and the lender will not be able to
process the loan.

I would like to know what is a formal AUS Engine for FHA and what are its eligible Responses, and also can I get a authorized document for reference.

Thanks

Sagar

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Sagar,

As far as I know Federal Housing Administration has approved both Fannie Mae's Desktop Underwriter for FHA and PMI's pmiAURA system for FHA. Both systems offer an underwriting recommendation that points out either that the borrower's credit and capacity are acceptable or that the loan application must be referred to an individual underwriter for further consideration.

Thanks,
Larry

sagarthakar · Joined: 15 May 2007 Posts: 68 26.01 Dollars($)

Thanks Larry for your response, but can u please brief me what exactly are the eligible AUS Responses for FHA ... or do they differ from Lender to Lender .... I m still in dilema as of what is the authorized AUS Engine and its response used finally by FHA

Guest 0.10 Dollars($)

Frankly speaking Sagar, i am not really aware of this, so let's wait for the other members here.

banker0679 · Posted: Sun Dec 16, 2007 11:27 am Post subject:

depends on the lenders.

If you receive a refer/caution on DU...you can have a DE U/W look at your file...and they can manually underwrite your file. Most lenders do not do manual underwrite so you will need to look into this.

You would also need to learn the guidelines to help decide if it's worth taking to an U/W

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