Can I still obtain an FHA insured loan if my loan was denied through FHA TOTAL Scorecard?

The Lender may not accept or deny an FHA-insured mortgage based solely on a risk assessment generated by TOTAL Mortgage Scorecard.  The underwriter must manually underwrite any mortgage application where the Automated Underwriting System (AUS) issues a Refer recommendation. 

For additional information see Handbook 4000.1 II.A.4.a.iii; II.A.4.a.iv.(C) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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-04833