HUD HOC Reference Guide

Any Automated Underwriting Systems (AUS) being used for FHA insured mortgage processing must utilize the FHA TOTAL Scorecard in determining recommendations for the underwriting decision. All FHA loans with the exception of non-credit qualifying streamline refinances must be ran through TOTAL ScoreCard. The complete feedback certificate/finding's report and the credit report identified as having been utilized by AUS, must be included in the case binder with each case submission. The feedback certificate should be placed on the top right hand side of the endorsement case binder.

Regardless of the risk assessment provided by TOTAL, the lender remains accountable for compliance with FHA's eligibility requirements, as well as for any credit capacity, and documentation requirements not covered in the FHA TOTAL Mortgage Scorecard User Guide.

It should be noted that not all AUS accept/approve risk assessments can be considered valid. Data integrity is a key component, as well as the lender recognizing that certain situations may requires a manual downgrade to a "Refer" assessment, which requires a manual underwrite.

Please see: Handbook 4155.1, Section 6.A; and the TOTAL User Guide