Chapter
2
Mortgage Credit Guidelines
Page 2-16
A DE underwriter is the designated party responsible for determining
the creditworthiness of the borrower on all manually underwritten
and AUS "refer" FHA cases. The lender should input the information
in FHA Connection under the Mortgage Credit Reject screen in the
Case Processing Menu Option. When an application is rejected, the
following notices from the lender are required. The borrower must
be provided a copy of the Lender's Notice of Denial, the HUD Non-Endorsement
Notice (if the case was FHA-Processed) and, when required, an Equal
Credit Opportunity Act Notice. Also, whenever a borrower is rejected
for unacceptable credit characteristics on the basis of information
contained in a credit report, the borrower must be notified and
be given the name, address and, if available, the telephone number
of the credit reporting agency. All previously rejected loans that
are subsequently approved by another lender will undergo a very
detailed underwriting review.
Please see: HUD
Handbook 4000.2 Paragraph 3-6B
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