Mortgage Credit Reject flags will remain part of the file. The underwriter must review and address the mortgage credit for a determination of eligibility. A Mortgage Credit Reject should be addressed by the underwriter on the remarks section of the LT sheet (Loan Transmittal Sheet).
Case Binders with a Mortgage Credit Reject may be submitted through the FHA Catalyst: Case Binder Module for endorsement.
For additional information, see:
Mortgagee Letter 2020-07 available at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
FHA Catalyst: Case Binder Module User Guide is available on the FHA Catalyst: Case Binder Module Website: https://www.hud.gov/program_offices/housing/FHACatalyst/casebinder
HQ Policy Determination