Why did FHAC issue a REFER at insurance application for a loan that received an ACCEPT in TOTAL?

All cases that are processed through TOTAL Scorecard are rescored when the insurance application is submitted through FHA Connection (FHAC). If any data changes, it is possible to receive a REFER rating in FHAC when a prior ACCEPT rating was received in TOTAL Scorecard or vice versa. This situation occurs as a result of inconsistencies between data entry in the two systems. The data in the Insurance Application and TOTAL Scorecard must match. Lenders should verify data in FHAC and TOTAL Scorecard for accuracy, ensuring that it matches in both systems, prior to seeking additional guidance from HUD.

One of the most frequent reasons for a score change is a difference in the gift fund amount entered in TOTAL Scorecard and the gift fund amount entered in the Insurance Application. In order to receive an accurate TOTAL Scorecard recommendation, the full amount of the gift received by the borrower and the source of the gift must be accurately entered and identified in the Automated Underwriting System (AUS). All gift funds must be identified regardless of whether or not they have been deposited into the borrower’s account.

Please work with your AUS and Loan Origination System (LOS) providers to ensure all assets and down payment information, including gifts, are entered correctly within their system to properly transmit the Gift Amount and Gift Source information to the TOTAL Scorecard.


The FHAC Guide is available at https://entp.hud.gov/idapp/html/mrtg-pkg.cfm

For more information please visit FHA's TOTAL Scorecard web page at https://www.hud.gov/program_offices/housing/sfh/total

FHA INFO #13-67 is available at https://www.hud.gov/program_offices/housing/sfh/FHA_info_messages

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02938