Fha Total VA Loan

Processing FHA TOTAL and VA Mortgages
This reference contains information to help you process Federal Housing Administration (FHA)
mortgages and Department of Veteran Affairs (VA) mortgages using Loan Prospector.
Information on FHA TOTAL Mortgage Scorecard is presented first, followed by VA Loan
information.
FHA TOTAL
Introduction
The FHA TOTAL Mortgage Scorecard (FHA TOTAL) is a credit assessment engine developed,
housed and maintained by the U.S. Department of Housing and Urban Development (HUD) to
assess the credit worthiness of FHA borrowers and to predict the default probability of FHA loan
applicants.
The credit data used in the assessment and FHA TOTAL results are FHA proprietary information
and are passed through Loan Prospector. Loan Prospector provides access to FHA TOTAL and
then presents the FHA TOTAL results. This section provides general guidance for processing
FHA loan applications using FHA TOTAL through Loan Prospector. “TOTAL” stands for
“Technology Open to Approved Lenders.” FHA TOTAL requires additional data elements, and
merged credit data obtained through Loan Prospector from a credit reporting company (CRC), or
affiliate.
Loan applications receiving an Accept risk class from FHA TOTAL through Loan Prospector
will benefit from reduced documentation and relief from certain representations and warranties
as compared to manually underwritten FHA loans.
Objectives
This reference covers what FHA TOTAL is, data entry requirements, obtaining the
required merged credit report, completing an assessment, and the FHA TOTAL
Mortgage Scorecard Full Feedback Certificate. After reviewing this reference, you
will be able to:
Use Loan Prospector to assess an FHA loan application through FHA TOTAL
Explain the credit and documentation waivers available when using FHA
TOTAL
Define the Accept and Refer risk classes for FHA loan applications
Document an FHA loan application for an Accept or a Refer risk class
Vertical revision bars " | " are used in the margin to highlight new requirements and significant
changes.
March 2009 www.FreddieMac.com/learn/ Page 1

How the FHA TOTAL Mortgage Scorecard Works in Loan Prospector
After loan data is entered or imported into Loan Prospector and the appropriate services are
requested, the following occurs:
1. Loan Prospector assesses eligibility for FHA TOTAL and prepares the data by
performing calculations.
2. Loan Prospector obtains a merged credit report from a credit reporting company or
affiliate (merged credit reference numbers may be used).
3. Loan Prospector sends required loan data and merged credit data received from the
credit reporting company or affiliate to FHA TOTAL.
4. FHA TOTAL performs eligibility checks and the credit risk assessment.
5. FHA TOTAL sends the results back to Loan Prospector.
6. Loan Prospector assembles the results and prepares the applicable credit policy and
documentation feedback messages. Loan Prospector also performs the maximum
mortgage limit validation.
7. Loan Prospector presents all the results in the FHA TOTAL Full Feedback Certificate.
Once results are received, the following can be completed:
Process the loan application as an Accept or Refer, as applicable

Underwrite the appraisal
Make the final lending decision

Lender Requirements
Before using Loan Prospector with FHA TOTAL to assess FHA loans, you must be an FHA-
approved broker or lender. Only FHA-approved Direct Endorsement lenders can deliver
mortgages to FHA for endorsement.
In addition to having certain agreements and approvals in place with FHA, as defined by HUD,
the following requirements need to be completed prior to accessing FHA TOTAL through Loan
Prospector:
Requirement How to Complete

1. FHA Lender ID and FHA Brokers need an FHA Lender ID and corresponding FHA
Sponsor ID Sponsor ID to process FHA loan applications. Lenders need an
FHA Lender ID, and FHA Sponsor ID (if applicable).
Contact the Federal Housing Administration Office of Lender

Approval and Certification to request or verify your FHA
Lender ID. Brokers and lenders assigning FHA loans should
contact the wholesaler(s) directly for their FHA Lender ID to
enter in the FHA Sponsor ID field.
2. Authorization to use FHA Your FHA Lender ID and FHA Sponsor ID (if applicable) must
TOTAL first be certified in order to access FHA TOTAL through Loan
Prospector. The loan originator, and sponsor if applicable, must
each certify their FHA Lender ID.
To certify your FHA Lender ID:

Have your designated Application Coordinator use their
personal ID and password provided by FHA to log on to
the FHA Connection at
http://www.hud.gov/offices/hsg/connect.cfm
Select the “ID Maintenance” icon
Select the “FHA Administration” icon
Select “TOTAL Mortgage Scorecard
Acknowledgement”
Accept the “Acknowledgement of Terms and
Conditions for TOTAL Mortgage Scorecard

Requirement How to Complete

3. CRC or affiliate FHA TOTAL requires the use of a merged credit report. It
relationships to obtain is recommended that relationships be established with two
merged credit within Loan or more CRCs, or affiliates, for access to merged credit
Prospector reports obtained through Loan Prospector. Refer to
http://www.LoanProspector.com/about/crc.html for
information on establishing these relationships.
4. Latest version of loan Check with your LOS vendor to see if you have the latest
origination system (LOS) version of their software. It must include the FHA Lender
software if importing ID and FHA Sponsor ID data fields.
Mortgage Eligibility Requirements

FHA Purchase, Credit Qualifying Streamline Refinance and Regular Refinance transactions can
be assessed by FHA TOTAL through Loan Prospector and includes:
FHA 203(b); 15-, 20-, and 30-year fixed-rate

FHA 251 – Adjustable-Rate Mortgage (ARM)
FHA Hybrid ARMs (3-, 5-, 7- and 10-year ARM)
FHA 234 – Condominiums
FHA 203(k) – Rehabilitation loans
Merged Credit Requirements

You must obtain a merged credit report through Loan Prospector for FHA TOTAL. Infiles are
not requested from the repositories and are not used in the assessment performed by FHA
TOTAL.
For FHA loan applications, the credit data from the merged credit report is an essential part of
the required data used in the FHA TOTAL assessment. An additional fee for the merged credit
report will be charged by the CRC, or affiliate. Merged credit reference numbers may be used
for a small fee if your process includes obtaining a merged credit report outside of Loan
Prospector. Refer to the LoanProspector.com online help or Merged Credit Report Options
quick reference (http://www.FreddieMac.com/learn/pdfs/uw/using_mc.pdf) for detailed
information on using merged credit report options.

Standard FHA Processes

Accessing FHA TOTAL through Loan Prospector allows you to process more FHA loan
applications in less time with less work than manual underwriting. However, the following FHA
standard processes remain the same when accessing FHA TOTAL through Loan Prospector:
Obtaining FHA case number

Obtaining Credit Alert Interactive Voice Response System (CAIVRS) authorization
Ordering and underwriting appraisals
Determining whether a condominium or planned unit development (PUD) has FHA
approval
Completing a HUD-92900-PUR, 92900-WS, or 92900-A
Confirming the correct FHA mortgage insurance premiums (MIP)
Obtaining FHA MIP refund information
Obtaining FHA refinance authorization
Refer to your local HUD Home Ownership Center field office or the HUD Handbook 4155 for
detailed information.
Required Data for FHA Loans

In addition to the data required for all loan types processed through Loan Prospector, the
following additional data is required for FHA loan applications (some fields may be required for
other loan types):
Field Name Description
Alimony Obligation (if Monthly amount of alimony lender chooses to treat as a reduction
applicable) in borrower’s monthly gross income, rather than as debt obligation,
according to the Liabilities section of the HUD Handbook 4155.
Buyer Closing Costs Dollar amount of closing costs borrower is paying toward
transaction.
Federal Delinquency/Lien Value indicating if borrower is currently delinquent or in default on
a federal loan.
If a CAIVRS authorization indicates a Federal Delinquency/Lien,
indicate, “Yes.”
Financed Discount Points Dollar amount of discount points to be financed on FHA no cash-
(if no cash-out refinance) out refinance.
Financed MIP Dollar amount of FHA Up-front Mortgage Insurance Premium that
is rolled into the loan amount.
FHA Case Number FHA-assigned number identifying an FHA loan application. To be
included on the Feedback Certificate and accepted by FHA, you
must enter the FHA Case Number on or before the last submission.
FHA Lender ID FHA-assigned number identifying the broker or lender originating
the mortgage. This ID is required on all FHA loan applications.


FHA Sponsor ID FHA-assigned number for the sponsoring wholesaler underwriting
the mortgage. This ID is required if the mortgage is being
underwritten by a different lender (other than FHA Lender ID).
This number should also correspond to the wholesaler selected on
the Assign Loan page.
Property County Name County name of property being financed.
Property State State location of property being financed.
Property Zip Code Zip code of property being financed, without dashes.

How to Access FHA TOTAL Mortgage Scorecard and Enter FHA Loan Data
To access FHA TOTAL, login to Loan Prospector. In addition to your User Name and Password
used to access Loan Prospector, you’ll need your certified FHA Lender ID, and FHA Sponsor ID
as applicable.
The following information provides the navigational steps for entering FHA loan data in Loan
Prospector:
1. Login and enter loan data on the Loan File Setup and Loan Application Data pages.
2. Select ‘FHA’ for the Mortgage Type field. Enter all the remaining required loan data
and click Next to access the FHA page.
If you have questions regarding the field, click the field label to access online help.

The FHA data page displays:
3. Enter the FHA-specific data on the FHA page. Click Next.

Note: The FHA Case Number must be entered on or before the last submission or FHA
will not endorse the loan.
You have the option to enter the Lender ID (and Sponsor ID if applicable), on the User
Profile page. If you enter this data on the User Profile page, the data will automatically
populate on the FHA page. In the event the FHA Lender ID or FHA Sponsor ID
changes, you may manually overwrite this data on the FHA page when necessary.
Importing a loan with a different FHA Lender ID or FHA Sponsor ID will also
overwrite these fields.
For originating brokers or lenders working with wholesalers, make sure the FHA
Sponsor ID entered on the FHA page matches the wholesaler selected on the Assign
Loan page. If there is a change in the assigned wholesaler, be sure to update the FHA
Sponsor ID accordingly. For detailed information on the Assign Loan feature, refer to
the Loan Prospector Functionality Guide located at
http://www.FreddieMac.com/learn/pdfs/uw/fun_guide.pdf.

The Request Services page displays with Automated Underwriting selected:
4. Select Merged Credit on the Request Services page.

The Request Services page displays with expanded Merged Credit data fields.
5. Select a CRC and indicate “single” or “joint” merged credit report preference. Enter
a Reference Number if applicable. Click Submit.
For loan applications assessed through FHA TOTAL, a merged credit report is required. An
“Invalid” message will be returned if merged credit is not requested. Merged credit report fees will
be assessed by the CRC, or affiliate.

When no data entry errors are detected, the Confirm Submission page displays.
6. Click Confirm Submit to submit the mortgage for an FHA TOTAL assessment. If
data errors are detected, the Correct Errors page displays. When prompted, follow
the on-line instructions to correct errors.
A message displays confirming loan submission.
7. After confirming the submission, you have two options:

• Wait for the results to display (approximately 2 minutes)
• View the results later using the Unviewed Results option

Accessing FHA TOTAL Mortgage Scorecard Results

After submitting the loan application for assessment, if you decide to wait for the results, they
will display automatically, otherwise you may access results later using the Unviewed Results
option on the left navigation bar for a period of 14 days. If you have not viewed the results
within 14 days, use the Find Loans feature on the Loan Prospector Main page to access the
loan and view results.
Once the loan is selected, a list of available results documents will display in the left navigation
bar under the View Results section. Based on the assessment performed by FHA TOTAL, Loan
Prospector returns the following results:
FHA TOTAL Scorecard Full Feedback Certificate

FHA TOTAL Scorecard Documentation Checklist
Merged Credit Report(s) from the CRC or affiliate

Upon a successful submission, the FHA TOTAL Scorecard Full Feedback Certificate displays as
follows:

Accessing Merged Credit Reports

Merged credit results received from the CRC or affiliate can be selected from the left navigation
bar. It is recommended that you print the merged credit results and place it in the loan file for
future reference. Once merged credit data has been accessed it is no longer accessible from the
navigation bar after 7 days unless the loan data is resubmitted.
If you need to view your merged credit reports after 7 days, you must resubmit the loan data to
refresh the existing merged credit report. Upon resubmission, merged credit will be re-pulled
from the CRC if critical borrower data changes, a new CRC is selected, joint or single merged
indicator changes, or credit report exceeds 120 days. In these instances, new fees will apply.
Reviewing Results
Each time you successfully submit a loan application to FHA TOTAL through Loan Prospector,
you will receive results providing important data, processing and documentation information for
the transaction. The results, including merged credit, are valid for 120 days prior to the Note
Date. If the results are not dated within 120 days of the Note date, then the loan application must
be resubmitted.
The following apply to FHA loan applications:
The Full Feedback Certificate is titled "FHA TOTAL Scorecard Full Feedback
Certificate".
Selected credit scores are displayed within messages in the Loan Processing
Information section.
Refer risk classes may have messages displayed in the Credit Risk Comments section
indicating reasons why FHA assessed the mortgage as a Refer.
The Doc. Checklist is titled "FHA TOTAL Scorecard Doc. Checklist".

FHA TOTAL Scorecard Full Feedback Certificate Example
Note: New Submissions With FHA Case Numbers Dated on or After October 1, 2008
In order to effectively determine the required FHA insurance premiums for FHA submissions in
Loan Prospector with FHA Case Numbers dated on or after October 1, 2008, through September
30, 2009, please refer to the September 4 Mortgagee Letter 2008-22 and follow these guidelines:
• As of October 1, if you receive one of the following feedback messages on the FHA
TOTAL Mortgage Scorecard Full Feedback Certificate, and your Case Number issuance
date is on or after October 1, please disregard the message and refer to the September 4
Mortgagee Letter 2008-22 to manually determine the appropriate insurance premiums:
Message Feedback Message

Code
VF The UFMIP for this loan is based on the first time borrower NOT
having completed HUD approved pre-purchase counseling. The FHA
Upfront Mortgage Insurance Premium (UFMIP) Factor cannot
exceed 2.00% for first time homebuyers who completed HUD
approved pre-purchase housing counseling.
VH If the refinanced conventional ARM mortgage to FHA mortgage is
delinquent, the Upfront Mortgage Insurance Premium (UFMIP) is
2.25%*. The annual premium is .55% when LTV > 95%; if LTV
ratio <= 95%, the annual premium is .50%.
*Confirm the UFMIP percentage in the September 4 Mortgagee Letter 2008-22, when
this message appears on a refinance transaction, if applicable.
• The following feedback messages should be reviewed for accuracy when received on the
FHA TOTAL Mortgage Scorecard Full Feedback Certificate:
Message Feedback Message

Code
VJ The FHA Upfront Mortgage Insurance Premium (UFMIP) Factor is
(x.xx)%.
VK The FHA Annual Premium Factor is (x.xx)%.
HK Ineligible for FHA w/values sent–See Upfront Premiums Chart.

Description Example
Example of Accept results:
FHA TOTAL title
FHA TOTAL returns a risk

class and documentation
level of either Accept or
Refer based on the loan data
submitted and merged credit
from CRC through Loan
Prospector
If reasons for a Refer risk class

are provided by FHA TOTAL,
they will appear in the Credit
Risk Comments section.

Description Example
The Loan Processing

Information section provides
selected credit score
information
Confirmation that FHA

TOTAL assessed the
mortgage
The FHA Case Number is

required on the Feedback
Certificate for FHA
endorsement
The FHA Upfront Mortgage

Insurance Premium Factor
messages. Note: If a
refinance transaction, an
additional FHA Upfront
Mortgage Insurance Premium
message with the code ‘VH’
is returned in this section, but
is only applicable if
refinancing a conventional
ARM mortgage.
The FHA Annual Premium

Factor for this loan

Description Example
For Accept loans, enter ZFHA

as the CHUMS ID on HUD
92900 as indicated in the
feedback messages. For
Refer loans, a message
indicating an FHA Direct
Endorsement Underwriter
signature is required would
appear.

Loan Processing Information

The Loan Processing Information section of the Full Feedback Certificate provides various types
of processing and underwriting messages including:
Minimum documentation requirements

Validation messages to assist you in ensuring our AUS received the correct data
Review messages to bring your attention to specific areas of the loan application
requiring closer review.
If messages in this section indicate inaccurate data, correct the errors and resubmit the loan
application.
Additional messages in this section indicate the following FHA information:
Maximum Mortgage Limit - Loan Prospector electronically transfers information from the
FHA Maximum Mortgage Limit tables found on the HUD website at
http://www.hudclips.org/. Using this automatic service, you can determine if your loan
application meets FHA’s eligibility requirements for the geographic area limits.
− If the loan amount submitted is higher than the maximum mortgage limit, you will
receive a purchase restriction message on the Feedback Certificate so that you may
determine if the loan application is eligible for FHA insurance.
− FHA assessments compare the Property County and Property State submitted to the FHA
Maximum Mortgage Limit Tables. If the Maximum Mortgage Limit cannot be found for
the geographical area submitted, a message appears advising you to manually validate
that the amount is eligible for the specified geographic area.
Check the spelling of the county name against the spelling in the FHA Maximum Mortgage
Limit Tables if you receive the message stating the amount could not be found.
Statutory Investment Requirement - Loan Prospector calculates the Statutory Investment

Requirement per line 10d of HUD-92900-PUR (3.5 percent of contract sales price). If the
down payment is less than the statutory investment requirement, you will receive a purchase
restriction message on the FHA TOTAL Full Feedback Certificate so that you may determine
if the loan application is eligible for FHA insurance.
FHA Minimum Down Payment
FHA Upfront Mortgage Insurance Premium Factor - This is an estimate of your upfront
mortgage insurance premium for the loan submitted.
FHA Annual Premium Factor - This is an estimate of your annual mortgage insurance
premium for the loan submitted.

Purchase Restrictions
Purchase Restriction message(s) returned on the FHA TOTAL Scorecard Full Feedback
Certificate provides the reason(s) a mortgage may not be acceptable for FHA insurance.
For example, you will receive specific messages if any of the following occur:
A loan application does not meet FHA’s Statutory Investment requirement of 3.5 percent
A loan application exceeds FHA’s Maximum Mortgage Limit
The Maximum Mortgage Limit cannot be found for a particular geographic region
If the Purchase Restriction message “FB Review FHA Statutory Investment Requirement for
eligibility” is received and you determine sufficient funds exist per HUD Handbook 4155, you
may disregard the message.

FHA TOTAL Mortgage Scorecard Doc. Checklist
Description Example
FHA TOTAL title
CAIVRS reminder
FHA TOTAL Documentation

requirements

Understanding the Results

To be eligible for delivery to FHA, the loan file must be documented according to the
streamlined guidelines established by FHA for loan applications evaluated by their scorecard.
The FHA TOTAL Scorecard Full Feedback Certificate provides guidance regarding the
documentation and underwriting requirements for FHA loan applications. You may also want to
refer to the FHA TOTAL Mortgage Scorecard and VA Documentation Matrix located at
http://www.FreddieMac.com/learn/pdfs/uw/total_matrix.pdf. In some cases, one of HUD’s
Home Ownership Centers may need to be contacted for specific credit policy-related questions
and situations not addressed in the results.
Risk Classes and Documentation Levels

FHA TOTAL will return a risk class indicating the level of risk identified, responsibility for
credit representations and warranties, and underwriting and documentation requirements for the
FHA TOTAL mortgage. Descriptions of the FHA TOTAL risk classes are provided in the
following table.
FHA TOTAL will return a documentation level indicating the minimum level of documentation
the Seller must obtain for the FHA TOTAL mortgage. Descriptions for the FHA TOTAL
documentation levels are also provided in the following table.
Risk Class
If FHA TOTAL returns a risk class of Accept, the borrower’s credit reputation
Accept and capacity are acceptable to FHA, and FHA agrees to endorse the mortgage,
provided the data is true, complete, and accurate and the entire mortgage
package meets FHA requirements.
The Accept risk class substitutes for an FHA Direct Endorsement underwriter’s
personal review of the borrower’s credit and capacity.
If FHA TOTAL returns a Refer risk class, it has identified weaknesses in the
Refer borrower’s credit reputation and/or capacity that require further assessment.
For FHA mortgages, an FHA Direct Endorsement underwriter must analyze
the entire application to determine if the mortgage qualifies for FHA
endorsement in accordance with the HUD Handbook 4155.
Documentation Level
If FHA TOTAL returns a documentation level of Accept, it allows you to take
Accept advantage of substantially fewer documentation requirements than traditionally
underwritten FHA loan applications.
If FHA TOTAL returns a documentation level of Refer, standard
Refer documentation requirements are available for loan applications assessed by
FHA TOTAL.

Representations and Warranties

FHA loan applications receiving an Accept risk class through FHA TOTAL Mortgage Scorecard
benefit from relief of certain lender representations and warranties as described in the following
paragraphs.
Credit
For FHA loan applications receiving an Accept risk class, the lender is not responsible for
representations or warranties related to determining borrower credit reputation. The Accept
credit warranty message states:
LOAN PROCESSING INFORMATION
----------APPLICABLE CREDIT WARRANTIES AND WAIVERS---------
F0 Credit Warranty: Not required to determine borrower shows the
willingness to pay.
For FHA loan applications receiving a Refer risk class, the lender is responsible for
representations or warranties related to determining borrower credit reputation. The Refer credit
warranty message states:
-----------APPLICABLE CREDIT WARRANTIES AND WAIVERS--------
F6 Credit Warranty: Required to determine that the borrower shows the
willingness and financial ability to pay.
Ratios
For FHA loan applications receiving an Accept risk class, the lender is not responsible for
determining whether the borrower’s monthly housing payment-to-income ratio and monthly
debt-to-income ratio are acceptable to FHA. The Accept ratio warranty message:
---------APPLICABLE CREDIT WARRANTIES AND WAIVERS----------
FY Ratio Warranty: Not required to determine if the borrower's monthly
housing and monthly debt ratios meet program requirements.
For FHA loan applications receiving a Refer risk class, the lender is responsible for determining
whether the borrower’s monthly housing payment-to-income ratio and monthly debt-to-income
ratio are acceptable to FHA. The Refer ratio warranty message in our AUS states:
----------APPLICABLE CREDIT WARRANTIES AND WAIVERS-----
FZ Ratio warranty: Required to document reasons, including compensating
factors, for approving the loans that exceed FHA-established debt ratios.

CAIVRS
FHA loan applications are subject to Credit Alert Interactive Voice Response System (CAIVRS)
authorization showing no delinquent obligation or claim payment for all borrowers.
The following messages may be returned on the FHA TOTAL Full Feedback Certificate:
CREDIT INFORMATION
HA: If CAIVRS indicates delin/lien, manually downgrade to REFER.

KC: If CAIVRS indicates federal delinquency/lien, this loan must be
documented and underwritten to FHA’s REFER requirements.
You or the FHA Direct Endorsement underwriter, as applicable, must determine all borrowers
have a clear CAIVRS number. If an applicant has a credit alert status problem, the applicant
must contact the agency reporting the issue and resolve it in order to be eligible for FHA
endorsement. You may also be required to reclassify the loan application to a Refer risk class.
If you receive a CAIVRS authorization for any borrower showing a delinquent

obligation or claim payment, ensure that the data field for Federal Delinquency/Lien is
marked “Yes” and resubmit the loan. Regardless of the risk class, you will need to
resubmit the loan application. You also may be required to reclassify the loan to a Refer
risk class.
The Lending Decision

Once you’ve validated the necessary data and results from FHA TOTAL, you will proceed with
review of the appraisal, assess the borrower(s) credit reputation if required, make the lending
decision, close the loan and submit for FHA endorsement.
The lender retains all authority to make the lending decision. Any issues or questions regarding
granting or denying credit, including the use of adverse actions notices, should be directed to the
lender.
How to Document Credit Information

The table below provides some of the typical recurring issues and required actions associated
with documenting credit information for FHA loan applications assessed by FHA TOTAL.

If… Then…
The merged credit data Enter the correct information into Loan Prospector and
obtained through Loan request the assessment again.
Prospector contains incorrect
borrower identifying
information for any of the
following:
Name
Social Security Number
The loan application receives If the inaccurate information has been corrected at the
an FHA Accept risk class, repositories, you may use Loan Prospector’s optional
but the merged credit data Reorder Credit Service to request fresh merged credit for
contains incorrect identifying individual borrowers or joint borrower pairs. Refer to the
or significantly inaccurate LoanProspector.com online help or Merged Credit Report
information. Options quick reference at
http://www.FreddieMac.com/learn/pdfs/uw/using_mc.pdf
for information on using this service.
If incorrect identifying or significantly inaccurate
information still exists, manually reclassify the loan
application to Refer,
Document all borrowers' credit reputations according to the
HUD Handbook 4155 for FHA loan applications, and
Order a triple-merged credit report or RMCR or
independent third-party information to clarify the
inaccuracy.
The merged credit data does Obtain a separate written verification for each significant debt
not contain a reference for reported on the loan application but not verified on the merged
each significant open debt credit data.
listed on the loan application.
The merged credit data has Obtain a separate written verification for each applicable
accounts listed as "will rate account.
by mail only" or "need
written authorization".
The loan application receives • The FHA Direct Endorsement underwriter must base the
a Refer risk class. assessment of the borrower’s credit reputation on the
borrower’s entire credit history for all borrowers as outlined
in the HUD Handbook 4155.
• Include any debts resulting from credit inquiries in the past
90 days in the total monthly debt reported to Loan
Prospector.

If… Then…
The FHA Direct Document the loan application according to the reduced
Endorsement underwriter documentation requirements for a Refer risk class.
concludes that the borrower’s
credit reputation is
acceptable despite significant
adverse or derogatory
information.
The merged credit data Accept Risk Class:
shows that a mortgage or Reclassify the risk class to Refer.
significant debt is greater Any credit or ratio waivers listed on the FHA TOTAL Full
than 90 days past due and the Feedback Certificate are invalid.
credit report is up-to-date. Document according to Refer documentation guidelines.
Refer Risk Class:
Underwrite and document the loan application to the Refer risk
class and documentation requirements.
The merged credit data All Loan applications:
contains derogatory No explanation of derogatory credit is required for loan
information. applications receiving an Accept risk class.
All other loan applications require a written explanation
from the borrower.
Note: judgments must be paid off per HUD Handbook
4155.
Modifying and Resubmitting FHA Loans

You may resubmit a loan application to FHA TOTAL up to 15 times without incurring an
additional assessment fee. Each submission, regardless of the number of services requested,
counts once toward the transaction limit. You may need to resubmit your FHA loan application
for a variety of reasons at some point in your process, including:
The final risk class and documentation level is greater than 120 days from the Note Date.
The merged credit data results are greater than 120 days from the Note Date.
The Credit Alert Interactive Voice Response System (CAIVRS) authorization shows a
Federal Delinquency/Lien for any borrower.
Any information changes - including decreases to a borrower’s income, assets and/or
liabilities.
There is a change to the property valuation, sales price or terms and conditions of the
mortgage.
There is a critical borrower(s) data change or addition/deletion of borrower(s)
To include the FHA Case Number if not already entered on a prior submission.

Perform the following steps if you need to resubmit an FHA loan application:
Process for Resubmitting an FHA Mortgage

Step Action
1 Select the FHA loan application to be resubmitted and click Modify Loan.
2 Make any data changes required on the Loan File Setup page, Loan Application
Data pages, FHA page, and ARM page (if applicable).
3 Review and update merged credit selections.
The Credit Reporting Company and Single or Joint report type fields must be
completed on every resubmission regardless of access method. If the information is
not entered, the loan application will receive an Incomplete response and messages
instructing you to enter the required information. The process for entering data in the
fields may vary based on access type when you resubmit an FHA loan application:
1. Select Request Services on LoanProspector.com

2. Select Merged Credit so the credit report option fields appear
3. If the name of your CRC does not appear in the Credit Reporting Company
field select your CRC from the pull down list
4. Enter or confirm the correct report type is selected in the Single or Joint report
type field
5. Enter or confirm the Reference Number(s), if applicable
Note: Merged credit will automatically be re-pulled from the CRC if critical
borrower data changes, a new CRC is selected, joint or single merged indicator
changes, or credit report exceeds 120 days. Fees will apply. Refer to the
LoanProspector.com online help or Merged Credit Report Options quick reference at
http://www.FreddieMac.com/learn/pdfs/uw/using_mc.pdf for more information on
using the merged credit options.
4 Submit the mortgage for assessment.
5 Review the assessment results. Look for any changes to the risk class and
documentation level, as well as the detailed feedback messages for any changes that
would impact the processing and underwriting of the mortgage.

Requirements for Preparing a Mortgage for Delivery to FHA

For FHA mortgages, obtain an FHA Mortgage Insurance Certificate through HUD according to
the requirements in the HUD Handbook 4155. Following is a summary of the requirements:
If a loan application receives … Then…
Refer risk class An FHA-approved Direct Endorsement (DE) underwriter
must sign the HUD 92900 form.
Accept risk class A DE underwriter’s signature or CHUMS ID is not required
on the following FHA Forms:
• 92900-PUR
• 92900-WS
• 92900-A
Accept risk class, but there exists a An FHA DE underwriter must sign the HUD 92900 form.
condition where you must reclassify,
document and underwrite as a Refer
risk class
Ensure you have performed all of the following tasks before delivering a Loan Prospector FHA
loan application:
Place the FHA TOTAL Scorecard Full Feedback Certificate on the right side, top sheet,
of the FHA endorsement binder
If Accept risk class, enter "FHA TOTAL Scorecard" on line 19 of the 92900, in lieu of a
DE underwriter's signature
Example 92900-A:
X This mortgage was rated as an “accept” by a FHA-approved automated underwriting system. As such, the undersigned representative of the
mortgagee certifies to the integrity of the data supplied by the lender used to determine the quality of the loan, that a Direct Endorsement
Underwriter reviewed the appraisal (if applicable) and further certifies that this mortgage is eligible for HUD mortgage insurance under the
Direct Endorsement program. I hereby make all certifications required for this mortgage as set forth in HUD Handbook 4000.4
Mortgagee Representative: John Smith

_______________________________________________________________
FHA TOTAL Scorecard

FHA-Approved Automated Underwriting System: ________________________________________________________________
If Accept risk class, enter “ZFHA” as CHUMS ID on the HUD 92900.

Obtain data integrity certification from a representative of the mortgage company as follows:
− Accept – Sign the “Accept” box and put “FHA TOTAL Scorecard” as the FHA-approved
Automatic Underwriting System on page 3 of the 92900-A (revised March 1998).
− Refer – DE underwriter must provide signature and CHUMS ID on FHA Form 92900-
PUR, 92900-WS, or 92900-A.

Additional Resources
Questions related to the FHA TOTAL assessment through Loan Prospector, including
functionality and feedback messages may be directed to Freddie Mac Customer Service:
Lenders: 800-FREDDIE (800-373-3343)

Brokers: 888-LP-ON-WEB (888-576-6932)
Questions regarding FHA credit policy and underwriting requirements should be directed to:
Sponsoring lender
FHA Direct Endorsement Underwriter
FHA’s frequently asked questions at http://faq.fha.gov/
FHA’s Resource Center at 800-CALLFHA (225-5342)
HUD Handbook 4155, FHA’s Technology Open To Approved Lenders (TOTAL)
Mortgage Scorecard User Guide, Mortgagee Letter 2004-01, dated January 6, 2004,
and Mortgagee Letter 2008-16, dated June 11, 2008, all located at
http://www.hudclips.org
HUD website located at http://www.hud.gov

Summary
Following are the key points for FHA loan applications assessed by FHA TOTAL through Loan
Prospector:
Underwriting and documentation requirements are streamlined for FHA

Accept risk class loan applications assessed by FHA TOTAL through Loan
Prospector due to the waivers received for verifying income/employment,
ratios, and assets.
For FHA loan applications that receive a Refer risk class, the lender is
responsible for the credit and ratio warranties.
If the merged credit reports obtained through Loan Prospector contain

significantly inaccurate information and the credit has been corrected at the
repositories, you may use the Reorder Credit Service to request fresh merged
credit and an assessment. If the loan has not been assessed with corrected
credit, reclassify the FHA loan application to a Refer risk class.
This document is not a replacement or substitute for the requirements set forth in the Single-
Family Seller/Servicer Guide (Guide), Loan Prospector Functionality Guide, and/or terms of
your Master Agreement and/or Master Commitment, HUD Handbook 4155, FHA’s TOTAL
Mortgage Scorecard User Guide or VA Lender's Handbook.

VA Loans
Introduction
The Department of Veterans Affairs (VA) Freddie Mac allows Loan Prospector automated
underwriting service to assess VA loan applications. The Department of Veterans Affairs then
guarantees the VA mortgages.
Objectives
Some requirements for processing VA loan applications differ from those of
conventional/conforming loan applications. After completing this section, you
will be able to:
Use Loan Prospector to assess VA loan applications
Explain the credit and documentation waivers available when using Loan
Prospector to assess VA loan applications
Define the Accept and Refer risk classes for VA loan applications
Document a VA loan application using Accept and Refer documentation
requirements
For additional VA information refer to:
Pamphlet 26-7 Change 34, (November 17, 1997)

VA website at http://www.homeloans.va.gov/
Note: Vertical revision bars " | " are used in the margin to highlight new requirements and
significant changes.

Lender Requirements
Before processing VA loan applications through Loan Prospector, you must have certain
agreements and approvals in place. You must be an approved lender to use Loan Prospector for
VA loan applications and be an approved VA Automatic lender.
Mortgage Eligibility Requirements

Loan Prospector assesses and determines eligibility for VA guaranty for the following:
15-, 20-, and 30-year fixed-rate loans

VA 1-year ARM loans
3-, 5-, 7-, and 10-year Hybrid ARM loans
The assessment Loan Prospector performs is in accordance with VA requirements. Specifically,
Loan Prospector does the following:
Determines eligibility for assessment

Assesses borrower credit reputation
Assesses risk profiles
Standard VA Processes
Assessing VA loans with Loan Prospector allows you to process more VA loan applications in
less time with less work than manual underwriting. However, the following VA standard
processes remain the same when assessing VA loan applications with Loan Prospector:
Obtaining VA case number

Obtaining Credit Alert Interactive Voice Response System (CAIVRS) authorization
Ordering appraisals
Determining whether a condominium or PUD has VA approval
Verifying a veteran’s status and establishing full or partial entitlement
Obtaining VA Certificate of Eligibility
Determining maximum allowable financing
Determining VA funding fee
Refer to your local VA field office or the VA Lender’s Handbook for more information on these
standard processes.

Required Data for VA Loans

In addition to the data required for all loan application types, Loan Prospector requires certain
data for VA loan applications:
Eligible Veteran Flag indicating if a borrower qualifies as Veteran under VA
guidelines.
Federal Delinquency/Lien Indicates if borrower is currently delinquent or in default on a
federal loan.
If a CAIVRS authorization indicates a Federal
Delinquency/Lien, indicate, “Yes.”
Financed MIP/Financed Dollar amount of FHA Up-front Mortgage Insurance
Funding Fee Premium or VA Funding Fee that is rolled into the loan
amount.
Property State State location of property being financed.
Property Zip Code Zip code of property being financed, without dashes.
A Case Number (optional) The VA-assigned case number for VA loans. The number is
used by VA to identify the loan.
VA Household Size Number of people meeting definition of household size,
according to the VA Lender’s Handbook. This is typically the
number of people for whom the Veteran is responsible.
VA Residual Income Monthly balance of funds available for family support after
meeting borrower’s shelter expenses, debts, and taxes,
according to the VA Lender’s Handbook.

How to Enter Data for VA Loans

The following information provides the navigational steps for entering VA loan data in Loan
Prospector:
1. Login and enter loan data on the Loan File Setup and Loan Application Data pages.
2. Select ‘VA’ for the Mortgage Type field. Enter all the remaining required loan data
and click Next to access the VA page.
If you have questions regarding the field, click the field label to access online help.

The VA data page displays:
3. Enter the VA-specific data on the VA page. Click Next.

The Request Services page displays with Automated Underwriting selected:
4. Click Submit.

When no data entry errors are detected, the Confirm Submission page displays.
5. Click Confirm Submit to submit the mortgage for a VA assessment. If data errors are
detected, the Correct Errors page displays. When prompted, follow the on-line instructions
to correct errors.
A message displays confirming loan submission.
6. After confirming the submission, you have two options:

• Wait for the results to display (approximately 2 minutes)
• View the results later using the Unviewed Results option

Accessing VA Results
After submitting the mortgage for assessment, if you decide to wait for the results, they will
display automatically, otherwise you may access results later using the Unviewed Results option
on the left navigation bar for up to 14 days. If you have not viewed the results within 14 days,
use the Find Loans feature on the Loan Prospector Main page to access the loan and view
results.
Once the loan is selected, a list of available results documents will display in the left navigation
bar under the View Results section. Based on the assessment performed, Loan Prospector
returns the following results:
Full Feedback Certificate

Documentation Checklist
Infiles or Merged Credit Report(s), if requested, from the CRC or affiliate
Upon a successful submission, the Full Feedback Certificate displays as follows:


Accessing Merged Credit Reports

If requested, merged credit received from the CRC or affiliate can be selected from the left
navigation bar. It is recommended that you print the merged credit results and place them in the
loan file for future reference.
Once merged credit data has been accessed it is no longer accessible from the navigation bar
after 7 days unless the mortgage is resubmitted. If you need to view your merged credit reports
after 7 days, use the merged credit reference number and resubmit the loan to refresh the existing
merged credit report.
A small fee will be incurred.
Reviewing Results
Each time you successfully submit a loan to Loan Prospector, you will receive results providing
important data, processing and documentation information for the transaction. Also, just like
conventional and FHA loans, the results, including merged credit, are valid for 120 days prior to
the Note Date. If the results are not dated within 120 days of the Note date, then the loan data
must be resubmitted.
The information provided on the Full Feedback Certificate and Doc Checklist for VA loans is in
the same format as the results for conventional loans.
Purchase Restrictions
Purchase Restriction message(s) returned on the Full Feedback Certificate provides the reason(s)
a loan may not be acceptable for VA guaranty.
For example, you will receive specific messages if a loan application does not meet:
VA’s requirements for the loan program
VA’s requirements for loan-to-value (LTV)
Understanding the Results

To be eligible for delivery to VA, the loan file must be documented according to the streamlined
guidelines VA established for loan applications assessed by Loan Prospector.
The Full Feedback Certificate provides guidance regarding the documentation and underwriting
requirements for VA mortgages. You may also want to refer to the FHA TOTAL Mortgage
Scorecard and VA Documentation Matrix located at
http://www.FreddieMac.com/learn/pdfs/uw/total_matrix.pdf. In some cases, you may need to
contact VA for specific credit policy-related questions and situations not addressed in the results.

Risk Class and Documentation Level

Loan Prospector will return a risk class indicating the level of risk identified, responsibility for
credit representations and warranties, and underwriting and documentation requirements for the
VA loan. Loan Prospector will also return a documentation level indicating the minimum level
of documentation the Seller must obtain for the VA loan. Descriptions for the VA risk classes
and documentation classes are provided in the following table:
Risk Class
If Loan Prospector returns a risk class of Accept, the borrower’s credit
Accept reputation and capacity are acceptable to VA, and VA agrees to guarantee the
loan, provided the data is true, complete, and accurate and the entire mortgage
package meets VA requirements.
If Loan Prospector returns a Refer risk class, it has identified weaknesses in the
Refer borrower’s credit reputation and/or capacity that require further assessment.
For VA loans, a VA-Automatic Approved lender must analyze the application
to determine if the mortgage qualifies for VA guaranty, according to the VA
Lender’s Handbook.
Documentation Level
If Loan Prospector returns a documentation level of Accept, it allows you to
Accept take advantage of substantially fewer documentation requirements than
traditionally underwritten VA loans.
If Loan Prospector returns a documentation level of Refer, standard
Refer documentation requirements are available for these loans.
VA determines the residual income requirement according to the Property State you submit to
Loan Prospector. In some cases, due to the overall characteristics of the loan data and the
borrower, it is possible to receive an Accept risk class, even though the residual income may
below the figures shown on the chart in the VA Lender’s Handbook. You can verify the
residual income you submitted to Loan Prospector in the Loan Processing Information section
on the Full Feedback Certificate.

Representations and Warranties

VA loan applications receiving an Accept risk class benefit from relief of certain lender
representations and warranties as described in the following paragraphs.
Credit
For VA loan applications receiving an Accept risk class, the lender is not responsible for
representations or warranties related to determining borrower credit reputation. The Accept
credit warranty message states:

----------APPLICABLE CREDIT WARRANTIES AND WAIVERS---------
VX Credit Warranty: Not required to determine borrower shows the
willingness to pay.
For VA loan applications receiving a Refer risk class, the lender is responsible for
representations or warranties related to determining borrower credit reputation. You must
determine the borrower’s willingness to repay and that the loan file contains evidence of an
acceptable credit reputation. The Refer credit warranty message states:

VY Credit Warranty: Required to determine that the borrower shows the
willingness and financial ability to pay.
Ratios
For VA loan applications receiving an Accept risk class, the lender is not responsible for
determining whether the borrower’s monthly housing payment-to-income ratio and monthly
debt-to-income ratio are acceptable to VA. The Accept ratio warranty message:

V9 Ratio warranty: Not required to determine if the borrower’s monthly
housing and monthly debt ratios meet program requirements.
For VA loan applications receiving a Refer risk class, the lender is responsible for determining
whether the borrower’s monthly housing payment-to-income ratio and monthly debt-to-income
ratio are acceptable to FHA. The Refer ratio warranty message in our AUS states:

VZ Ratio warranty: Required to use the debt ratio as a guide to determine
whether or not the loan will be granted.

CAIVRS
VA Accept risk class loan applications are subject to Credit Alert Interactive Voice Response
System (CAIVRS) authorization for all borrowers showing no delinquent obligation or claim
payment. CAIVRS is a system used to check applicants for defaults in government-backed loans
(i.e., student loans and FHA or VA loans).
The following messages may be returned on the Full Feedback Certificate:
CREDIT INFORMATION
F1 CAIVRS Warranty: CAIVRS authorization for all borrowers must not
indicate a delinquent obligation/claim payment.
You or the VA Automatic Underwriter, as applicable, must determine all borrowers have a clear
CAIVRS number. If an applicant has a credit alert status problem, the applicant must contact the
agency reporting the issue and resolve it in order to be eligible for VA guarantee. You may also
be required to reclassify to a Refer risk class.
If you receive a CAIVRS authorization for any borrower showing a delinquent

obligation or claim payment, ensure that the data field for Federal Delinquency/Lien
is marked “Yes” and resubmit the loan. Regardless of the risk class, you will need to
resubmit. You also may be required to reclassify the loan to a Refer risk class.
The Lending Decision

Once you’ve validated the necessary data and results, you will proceed with review of the
appraisal, assess the borrower(s) credit reputation if required, make the lending decision, close
the loan and submit for VA guarantee.
The lender retains all authority to make the lending decision. Any issues or questions regarding
granting or denying credit, including the use of adverse actions notices, should be directed to the
lender.
How to Document Credit Information

The VA Lender's Handbook for VA loan applications provides detailed guidance for
underwriting and documentation. The following table provides some of the typical recurring
issues and required actions associated with documenting credit information for VA loans
assessed by Loan Prospector.

If… Then…
The credit reports you are using Enter the correct information into Loan Prospector and
to make your lending decision request the assessment again.
contain incorrect borrower
identifying information for any
of the following:
Name
Social Security Number
The loan receives an Accept If the inaccurate information has been corrected at the
risk class from Loan Prospector, repositories, you may use Loan Prospector’s optional
but the credit data contains Reorder Credit Service to request fresh credit for
incorrect identifying or individual borrowers or joint borrower pairs. Refer to the
significantly inaccurate LoanProspector.com online help or Loan Prospector
information, Functionality Guide at
http://www.freddiemac.com/learn/pdfs/uw/fun_guide.pdf
for information on using this service.
If incorrect identifying or significantly inaccurate
information still exists, manually reclassify the loan
application to Refer,
Document all borrowers' credit reputations according to the
VA Lender’s Handbook for VA loan applications, and
Order a triple-merged credit report or RMCR or
independent third-party information to clarify the
inaccuracy.
The credit data does not contain Obtain a separate written verification for each significant debt
a reference for each significant reported on the application but not verified on the credit data.
open debt listed on the loan
application
The credit data has accounts Obtain a separate written verification for each applicable
listed as "will rate by mail only" account.
or "need written authorization"
The loan data receives a Refer The VA Automatic underwriter must base the assessment
risk class from Loan Prospector of the borrower’s credit reputation on the borrower’s entire
credit history as outlined in the VA Lender’s Handbook.
Include any debts resulting from credit inquiries in the past
90 days in the total monthly debt you report to Loan
Prospector.
The VA Automatic underwriter Document the loan file according to Loan Prospector reduced
concludes that the borrower’s documentation requirements for Refer risk classes.
credit reputation is acceptable
despite significant adverse or
derogatory information

If… Then…
The credit data shows that Re-verify the debt to determine current status.
an existing mortgage or
significant debt is past due,
and
The credit report has not
been updated in 90 days
The credit data shows that Accept Risk Class:
an existing mortgage or Reclassify the risk class to Refer.
significant debt is greater Any credit or ratio waivers listed on the Full Feedback
than 90 days past due and Certificate are invalid.
Credit report is up-to-date Document according to Refer documentation guidelines.
Refer Risk Class:
Underwrite and document the loan file to the Refer risk
class and documentation requirements.
Credit data contains derogatory All Loan files:
information No explanation of derogatory credit is required for any
loan receiving an Accept risk class.
All other loan applications, regardless of loan type, require
a written explanation from the borrower.
Note: Judgments must be paid off or subject to a timely
repayment plan per the VA Lender’s Handbook.

Modifying and Resubmitting VA Loans

You may resubmit a loan application to VA up to 15 times without incurring an additional
assessment fee. Each submission, regardless of the number of services requested, counts once
toward the transaction limit. You may need to resubmit your VA loan application for a variety
of reasons at some point in your process, including:
The final risk class and documentation class is greater than 120 days from the Note Date.
The merged credit data results are greater than 120 days from the Note Date.
The Credit Alert Interactive Voice Response System (CAIVRS) authorization shows a
Federal Delinquency/Lien for any borrower.
Any information changes - including decreases to a borrower’s income, assets and/or
liabilities.
There is a change to the property valuation, sales price or terms and conditions of the
mortgage.
There is a change in borrowers.
At least one of the original veteran borrowers must remain, or the loan application is
considered a new application.
For additional information on modifying and resubmitting loans, refer to the Loan Prospector
Functionality Guide located at http://www.FreddieMac.com/learn/pdfs/uw/fun_guide.pdf.

Requirements for Preparing a Mortgage for Delivery to VA

For VA mortgages, obtain a VA guaranty through submission of the mortgage file to VA
according to the requirements in the VA Lender’s Handbook. Following is a summary of the
requirements:
If a loan application Then…
receives…
Refer risk class A VA-approved Automatic Lender must submit the loan data.
Accept risk class An underwriter’s certification or signature is not required on
VA Form 6393.
Lenders must complete the following certification:
I, the undersigned lender, hereby certify that case number (insert VA loan
number) was processed through Loan Prospector and received an “Accept”
rating. I further certify that all information entered into the system has been
verified and that any credit discrepancies have been reconciled.
A Mortgagee representative must sign and submit this
certification to VA, along with a copy of the Feedback
Certificate indicating the risk class.
Accept risk class, but there VA Automatic Underwriter must sign VA Form 6393.
exists a condition where you
must reclassify, document
and underwrite as a Refer
risk class

Summary
Following are the key points for VA loan applications:
Underwriting and documentation requirements are streamlined for VA

Accept risk class loan applications assessed by Loan Prospector due to
the waivers received for verifying income/employment, ratios, and
assets.
For VA loan applications that receive a Refer risk class, the lender is
responsible for the credit and ratio warranties.
If the credit report contains significantly inaccurate information,

reclassify the VA loan application to a Refer risk class.
This document is not a replacement or substitute for the requirements set forth in the Single-
Family Seller/Servicer Guide (Guide), Loan Prospector Functionality Guide, and/or terms of
your Master Agreement and/or Master Commitment, HUD Handbook 4155, FHA’s TOTAL
Mortgage Scorecard User Guide or VA Lender's Handbook.

Fha Total VA Loan

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Processing FHA TOTAL and VA Mortgages

March 2009 www.FreddieMac.com/learn/ Page 1

How the FHA TOTAL Mortgage Scorecard Works in Loan Prospector

Process the loan application as an Accept or Refer, as applicable

March 2009 www.FreddieMac.com/learn/ Page 2

Requirement How to Complete

Contact the Federal Housing Administration Office of Lender

To certify your FHA Lender ID:

March 2009 www.FreddieMac.com/learn/ Page 3

Requirement How to Complete

Mortgage Eligibility Requirements

FHA 203(b); 15-, 20-, and 30-year fixed-rate

Merged Credit Requirements

March 2009 www.FreddieMac.com/learn/ Page 4

Standard FHA Processes

Obtaining FHA case number

Required Data for FHA Loans

March 2009 www.FreddieMac.com/learn/ Page 5

Field Name Description

March 2009 www.FreddieMac.com/learn/ Page 6

March 2009 www.FreddieMac.com/learn/ Page 7

The FHA data page displays:

3. Enter the FHA-specific data on the FHA page. Click Next.

March 2009 www.FreddieMac.com/learn/ Page 8

The Request Services page displays with Automated Underwriting selected:

4. Select Merged Credit on the Request Services page.

March 2009 www.FreddieMac.com/learn/ Page 9

March 2009 www.FreddieMac.com/learn/ Page 10

7. After confirming the submission, you have two options:

March 2009 www.FreddieMac.com/learn/ Page 11

Accessing FHA TOTAL Mortgage Scorecard Results

FHA TOTAL Scorecard Full Feedback Certificate

March 2009 www.FreddieMac.com/learn/ Page 12

March 2009 www.FreddieMac.com/learn/ Page 13

Accessing Merged Credit Reports

March 2009 www.FreddieMac.com/learn/ Page 14

FHA TOTAL Scorecard Full Feedback Certificate Example

Message Feedback Message

Message Feedback Message

March 2009 www.FreddieMac.com/learn/ Page 15

Example of Accept results:

FHA TOTAL title

FHA TOTAL returns a risk

If reasons for a Refer risk class

March 2009 www.FreddieMac.com/learn/ Page 16

The Loan Processing

Confirmation that FHA

The FHA Case Number is

The FHA Upfront Mortgage

The FHA Annual Premium

March 2009 www.FreddieMac.com/learn/ Page 17

For Accept loans, enter ZFHA

March 2009 www.FreddieMac.com/learn/ Page 18

Loan Processing Information

Minimum documentation requirements

Additional messages in this section indicate the following FHA information:

Statutory Investment Requirement - Loan Prospector calculates the Statutory Investment

March 2009 www.FreddieMac.com/learn/ Page 19

March 2009 www.FreddieMac.com/learn/ Page 20

FHA TOTAL Mortgage Scorecard Doc. Checklist

FHA TOTAL title

FHA TOTAL Documentation