|Mortgagees who receive a Direct Endorsement (DE) program Test Case phase approval letter from a HUD Homeownership Center (HOC) must submit all Test Case binders for FHA review post-closing.
The Mortgagee must ensure that:
Mortgagees must review and respond to requests using the functions provided in the Loan Review System (LRS).
The HOC will issue either a Firm Commitment (approval), or, a Firm Reject (denial) via a Notice of Return (NOR). A NOR is a notification to the Mortgagee specifying the reason a Mortgage is not currently eligible for endorsement. When a Firm Commitment is issued, the HOC will process the case for endorsement. If a NOR is issued, the Mortgagee must make all necessary corrections and provide all required documentation using LRS before the mortgage can be endorsed. All Mortgagee requests for reconsideration must be received within the 60-Day endorsement submission period or within 30 Days of the issuance of the NOR, whichever is longer. If the request for reconsideration is submitted after this period, the Mortgagee must follow the guidelines for late submission.
For additional information see: