Automated underwriting system for mortgages launched

The Federal Housing Administration has announced the launch of its new automated underwriting system (AUS) for use by lenders originating mortgages for FHA insurance. Built on the FHA Catalyst technology platform, the new FHA Catalyst: Single Family Origination Module - AUS allows lenders to electronically submit loan application data for single family forward mortgages from their loan origination systems directly to the module and receive mortgage insurance eligibility scoring decisions generated from FHA’s TOTAL Mortgage Scorecard. The new AUS accepts the Mortgage Industry Standards Maintenance Organization (MISMO) 3.4 dataset used in the new, industry-wide Uniform Residential Loan Application. Other features include:

• Detailed feedback certificates that provide specific and actionable information for lenders that corresponds with FHA policies in the Single Family Housing Policy Handbook 4000.1;
• Integrated submission of credit report data reissuances, which eliminates the need for lenders to use a third-party routing system; and
• Enhanced data synchronization between loan origination systems and FHA Catalyst through state-of-the-art Application Programming Interface (API) technology.

The AUS will be available in FHA Catalyst for single family forward mortgage programs on or after October 30, 2020.