HUD HOC Reference Guide
Technical Review Reason CodesChapter 3
HUD's Post Endorsement Technical Review list of findings codes has been updated and are effective as of September 28, 2012.
These findings codes correlate to a particular credit, risk or valuation category. The first two digits of each code will represent the code category, e.g. CH -credit history; EQ - eligibility and qualification. The last two digits will indicate the specific finding within that category.
Effective September 28, 2012, FHA will use the new codes to cite findings on all cases selected for Post Endorsement Technical Review. The list containing all codes may be accessed via the web-link below. For authorized FHAC users, the new rating codes will appear on the Mortgagee Performance Reports (password required) and on the individual case and Underwriter Report (password required) as of September 28, 2012.
A rating of CONFORMING means no findings were identified in FHA�s review of the credit, capacity, capital and collateral in the file. A rating of DEFICIENT means one or more findings were identified in the review of the file that do not present a risk to the Department or may indicate documentation or processing errors, but such findings and errors did not result in a change to approval and/or insurability. A rating of UNACCEPTABLE means findings were noted indicating the file should not have been approved and/or insured or resulted in a significant increase in mortgage risk through one or more of the following:
An additional rating code of MITIGATED will apply for cases where an initial rating of UNACCEPTABLE was issued and the lender was able to provide documentation in response to a request from HUD that mitigated the risk. In such cases, the UNACCEPTABLE rating will be changed to MITIGATED. If more than one code was cited to support the issuance of an UNACCEPTABLE rating, the rating will only be changed if all risk factors have been mitigated.
|Content Archived: November 7, 2012|