HUD Handbook 4000.1 Part II.A.5

hud-4000-1-ii-a-5

HUD Handbook 4000.1 Part II.A.5 governs FHA manual underwriting — when AUS issues Refer / when TOTAL Accept was downgraded / when HUD employees are involved. Covers required credit reports (Tri-Merged or RMCR), per-Borrower credit pulls, non-borrowing-spouse community- property treatment, traditional-vs-nontraditional credit development, and the duty to submit downgraded HUD-employee Mortgages to FHA for final underwriting approval.

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Verbatim regulatory text (5)

Verbatim provisions from HUD Handbook 4000.1 Part II.A.5 — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

HUD Handbook 4000.1 II.A.5 — Manual underwrite on AUS Refer or downgrade

The Mortgagee must manually underwrite those applications where the AUS issues a Refer or applications which were downgraded to a manual underwrite.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

HUD Handbook 4000.1 II.A.5 — HUD-employee Mortgage requires FHA final approval

The Mortgagee must submit the underwritten mortgage application to FHA for final underwriting approval.

Source: HUD Handbook 4000.1 II.A.5 — HUD-Employee Manual Underwriting · source URL · snapshot 3bf33edadcf6461d

HUD Handbook 4000.1 II.A.5.a.i — Required credit report type (Manual)

The Mortgagee must either obtain a Tri-Merged Credit Report (TRMCR) or a Residential Mortgage Credit Report (RMCR) from an independent consumer reporting agency.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

HUD Handbook 4000.1 II.A.5.a.ii — Traditional credit before non-traditional

If a traditional credit report is available, the Mortgagee must use a traditional credit report.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

HUD Handbook 4000.1 II.A.5.a.i — Streamline refinance credit-report exception

The Mortgagee is not required to obtain a credit report for non-credit qualifying Streamline Refinance transactions.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

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Source of record: https://claudeforcompliance.com/regs/hud-4000-1-ii-a-5/ · register hud-4000-1-ii-a-5 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.