How are Mortgage Credit Rejects being handled at HUD while their underwriting staff is working remotely during COVID-19?

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:

FHA Catalyst: Case Binder Module User Guide is available on the FHA Catalyst: Case Binder Module Website:            

HQ Policy Determination


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-05555