FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > A. Title II Insured Housing Programs Forward Mortgages > 4. Underwriting the Borrower Using the TOTAL Mortgage Scorecard (TOTAL) — e. Final Underwriting Decision (TOTAL)

FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Final Underwriting Decision (TOTAL) (09/14/2015)

Effective 2015-09-14 · publisher's stamp for this provision

In force by default — effective 2015-09-14. This is the version that governs unless your firm has adopted the Update 18 revision.

e. Final Underwriting Decision (TOTAL) (09/14/2015) The Mortgagee may approve the Mortgage as eligible for FHA insurance endorsement if: • TOTAL Mortgage Scorecard rated the mortgage application as Accept; • the underwriter underwrote the appraisal according to standard FHA requirements; • the Mortgagee reviewed the TOTAL Mortgage Scorecard findings, and verified that all information entered into TOTAL Mortgage Scorecard is consistent with mortgage documentation, and is true, complete, and accurate; and • the Mortgage meets all FHA requirements applicable to Mortgages receiving a rating of Accept from TOTAL Mortgage Scorecard. While TOTAL Mortgage Scorecard is available for Mortgagees to use in their pre- qualification process of mortgage applicants, the Mortgagee must score the Mortgage at least once after assignment of an FHA case number. FHA will not recognize the risk assessment nor will information be carried from TOTAL Mortgage Scorecard to FHAC for endorsement processing, without an FHA case number. It is imperative that the Mortgagees make certain that they enter the FHA case number into their Loan Origination System or AUS as soon as it is known. This will ensure a more efficient endorsement process. i. Documentation of Final Underwriting Review Decision (TOTAL) The Mortgagee must complete the following documents to evidence their final underwriting decision. (A) Form HUD-92900-LT, FHA Loan Underwriting and Transmittal Summary On form HUD-92900-LT, the Mortgagee must: • indicate the CHUMS ID of the underwriter who reviewed the appraisal; • complete the Risk Assessment; and • enter the identification of “ZFHA” in the CHUMS ID. When the Feedback Certificate indicates “Accept/Ineligible,” the Mortgagee must document the circumstances or other reasons that were evaluated in making the decision to approve the Mortgage in the Remarks section. (B) Form HUD-92800.5B, Conditional Commitment Direct Endorsement Statement of Appraised Value The underwriter must confirm that form HUD-92800.5B, Conditional Commitment Direct Endorsement Statement of Appraised Value, is completed as directed in the form instructions. (C) Form HUD-92900-A, HUD Addendum to Uniform Residential Loan Application The Mortgagee must complete form HUD-92900-A, HUD Addendum to Uniform Residential Loan Application, as directed in the form instructions. An authorized officer of the Mortgagee, the Borrower, and the underwriter must execute form HUD-92900-A, as indicated in the instructions. ii. Conditional Approval (TOTAL) The Mortgagee must condition the approval of the Borrower on the completion of the final URLA (Fannie Mae Form 1003/Freddie Mac Form 65) and form HUD-92900-A. iii. HUD Employee Mortgages (TOTAL) If the Mortgage involves a HUD employee, the Mortgagee must condition the Mortgage on its approval by FHA. The Mortgagee must submit the case binder to FHA for final underwriting approval. iv. Notification of Borrower of Approval and Term of the Approval (TOTAL) The Mortgagee must timely notify the Borrower of their approval. The underwriter’s approval or the Firm Commitment is valid for the greater of 90 Days or the remaining life of the: • Conditional Commitment issued by HUD; or • the underwriter’s approval date of the Property, indicated as Action Date on form HUD-92800.5B.

Update 18 revision — optional now, mandatory 2026-11-10. Issued 2026-08-12 and stamped effective 2026-11-10. HUD's transmittal permits implementation immediately; it becomes required on 2026-11-10. A firm that has already adopted Update 18 should read this version.

e. Final Underwriting Decision (TOTAL) (11/10/2026) [Text was deleted in this section.] The Mortgagee may approve the Mortgage as eligible for FHA insurance endorsement if: • TOTAL Mortgage Scorecard rated the mortgage application as Accept; • the underwriter underwrote the appraisal according to standard FHA requirements; • the Mortgagee reviewed the TOTAL Mortgage Scorecard findings, and verified that all information entered into TOTAL Mortgage Scorecard is consistent with mortgage documentation, and is true, complete, and accurate; and • the Mortgage meets all FHA requirements applicable to Mortgages receiving a rating of Accept from TOTAL Mortgage Scorecard. While TOTAL Mortgage Scorecard is available for Mortgagees to use in their pre- qualification process of mortgage applicants, the Mortgagee must score the Mortgage at least once after assignment of an FHA case number. FHA will not recognize the risk assessment nor will information be carried from TOTAL Mortgage Scorecard to FHAC for endorsement processing, without an FHA case number. It is imperative that the Mortgagees make certain that they enter the FHA case number into their Loan Origination System or AUS as soon as it is known. This will ensure a more efficient endorsement process. i. Documentation of Final Underwriting Review Decision (TOTAL) The Mortgagee must complete the following documents to evidence their final underwriting decision. (A) Form HUD-92900-LT, FHA Loan Underwriting and Transmittal Summary On form HUD-92900-LT, the Mortgagee must: • indicate the CHUMS ID of the underwriter who reviewed the appraisal; • complete the Risk Assessment; and • enter the identification of “ZFHA” in the CHUMS ID. When the Feedback Certificate indicates “Accept/Ineligible,” the Mortgagee must document the circumstances or other reasons that were evaluated in making the decision to approve the Mortgage in the Remarks section. (B) Form HUD-92800.5B, Conditional Commitment Direct Endorsement Statement of Appraised Value The underwriter must confirm that form HUD-92800.5B, Conditional Commitment Direct Endorsement Statement of Appraised Value, is completed as directed in the form instructions. (C) Form HUD-92900-A, HUD Addendum to Uniform Residential Loan Application The Mortgagee must complete form HUD-92900-A, HUD Addendum to Uniform Residential Loan Application, as directed in the form instructions. An authorized officer of the Mortgagee, the Borrower, and the underwriter must execute form HUD-92900-A, as indicated in the instructions. ii. Conditional Approval (TOTAL) The Mortgagee must condition the approval of the Borrower on the completion of the final URLA (Fannie Mae Form 1003/Freddie Mac Form 65) and form HUD-92900-A. iii. Notification of Borrower of Approval and Term of the Approval (TOTAL) The Mortgagee must timely notify the Borrower of their approval. The underwriter’s approval or the Firm Commitment is valid for the greater of 90 Days or the remaining life of the: • Conditional Commitment issued by HUD; or • the underwriter’s approval date of the Property, indicated as Action Date on form HUD-92800.5B.

Source: FHA Single Family Housing Policy Handbook 4000.1 (as revised 11/26/2025) · source URL · snapshot 8c03836f77f317e1