FHA TOTAL Scorecard

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The Federal Housing Administration (FHA) is pleased to announce the deployment of the Technology Open to Approved Lenders (TOTAL) Mortgage Scorecard.

What is the FHA TOTAL Scorecard?

The FHA TOTAL Scorecard was developed by HUD to evaluate the credit risk of FHA loans that are submitted to an automated underwriting system. To underwrite an FHA loan electronically, a mortgagee must process the request through an automated underwriting system that can communicate with the FHA TOTAL Scorecard.

Why was the FHA TOTAL Scorecard developed?

FHA was interested in developing our own scorecard for a number of reasons.

	The FHA TOTAL Scorecard will ensure that applicants for FHA loan insurance are evaluated by the same scoring process regardless of the AUS vendor submitting the loan.
	Second, TOTAL will enhance FHA's ability to assess and manage risk. FHA systems will capture TOTAL Scorecard data and allow us to study and analyze trends and make policy changes when appropriate.
	Third, TOTAL will ensure that no borrower will be denied an FHA insured mortgage loan on the basis of a refer classification by an AUS. The TOTAL Scorecard provides two risk classifications: Accept/Approve or Refer. An "Accept/Approve" indicates that FHA will ensure the borrower's loan with reduced documentation. If the loan receives a "Refer" classification", the lender will be required to manually underwrite the loan.

How does the Scorecard work?

	The TOTAL Scorecard is internet-based and provides a real time response.
	The AUS provider must build an XML-based interface to TOTAL Scorecard.
	AUS "calls" the TOTAL Scorecard.
	TOTAL evaluates mortgage credit, makes a recommendation of accept or refer and provides recommendation to AUS. AUS provides recommendation with feedback messages to the lender.

The following documents provide additional information regarding the use of the FHA TOTAL Scorecard:

FAQs: Frequently Asked Questions (FAQs) is a document that provides answers to questions HUD staff have received regarding the FHA TOTAL Scorecard.

User Guide: The User Guide is a compilation of credit policies and documentation requirements that lenders must follow when using the FHA TOTAL Scorecard. The User Guide is compiled into Mortgagee Letter 2004-01. (The user guide was updated on 12/30/04 with the publication of FHA Mortgagee Letter 2004-47, TOTAL Mortgage Scorecard User Guide Update.)

Developer's Guide : The Developer's Guide provides the necessary information to establish an interface between the FHA's TOTAL Scorecard and an Automated Underwriting System (AUS). This document is primarily aimed at the software development and maintenance staff supporting an AUS.

Interim Rule FR-4835-I-01: This interim rule codifies the procedures that mortgages and automated underwriting system vendors must observe if they opt to use the FHA TOTAL Scorecard.

contact the Homeownership Center that services your area.

Contact FHA for assistance:

If you have any questions regarding the FHA TOTAL Scorecard or require additional information, please visit the FHA Resource Center.