FHA Total Scorecard
The Federal Housing Administration (FHA) is pleased to announce
the deployment of the Technology Open to Approved Lenders
(TOTAL) Mortgage Scorecard.
What is the FHA TOTAL Scorecard?
The FHA TOTAL Scorecard was developed by HUD to evaluate the
credit risk of FHA loans that are submitted to an automated
underwriting system. To underwrite an FHA loan electronically, a
mortgagee must process the request through an automated
underwriting system that can communicate with the FHA TOTAL
Scorecard.
Why was the FHA TOTAL Scorecard
developed?
FHA was interested in developing our own scorecard for a
number of reasons.The FHA TOTAL Scorecard will ensure that
applicants for FHA loan insurance are evaluated by the same
scoring process regardless of the AUS vendor submitting the
loan. Second, TOTAL will enhance FHA's ability to assess and
manage risk. FHA systems will capture TOTAL Scorecard data
and allow us to study and analyze trends and make policy
changes when appropriate. Third, TOTAL will ensure that no
borrower will be denied an FHA insured mortgage loan on the
basis of a refer classification by an AUS. The TOTAL Scorecard
provides two risk classifications: Accept/Approve or Refer. An
"Accept/Approve" indicates that FHA will ensure the borrower's
loan with reduced documentation. If the loan receives a "Refer"
classification", the lender will be required to manually underwrite
the loan.
The Federal Housing Administration (FHA) is pleased to announce
the deployment of the Technology Open to Approved Lenders
(TOTAL) Mortgage Scorecard.
What is the FHA TOTAL Scorecard?
The FHA TOTAL Scorecard was developed by HUD to evaluate the
credit risk of FHA loans that are submitted to an automated
underwriting system. To underwrite an FHA loan electronically, a
mortgagee must process the request through an automated
underwriting system that can communicate with the FHA TOTAL
Scorecard.
Why was the FHA TOTAL Scorecard
developed?
FHA was interested in developing our own scorecard for a
number of reasons.The FHA TOTAL Scorecard will ensure that
applicants for FHA loan insurance are evaluated by the same
scoring process regardless of the AUS vendor submitting the
loan. Second, TOTAL will enhance FHA's ability to assess and
manage risk. FHA systems will capture TOTAL Scorecard data
and allow us to study and analyze trends and make policy
changes when appropriate. Third, TOTAL will ensure that no
borrower will be denied an FHA insured mortgage loan on the
basis of a refer classification by an AUS. The TOTAL Scorecard
provides two risk classifications: Accept/Approve or Refer. An
"Accept/Approve" indicates that FHA will ensure the borrower's
loan with reduced documentation. If the loan receives a "Refer"
classification", the lender will be required to manually underwrite
the loan.
| FHA Loan Programs |
How does the Scorecard work?
The TOTAL Scorecard is internet-based and provides a real time
response.
The AUS provider must build an XML-based interface to TOTAL
Scorecard.
AUS "calls" the TOTAL Scorecard.
TOTAL evaluates mortgage credit, makes a recommendation of
accept or refer and provides recommendation to AUS. AUS
provides recommendation with feedback messages to the lender.
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