The underwriter's role and responsibilities are critical elements of the DE Program and FHA looks to the underwriter as the focal point of the program. The underwriter must use due diligence in obtaining, and verifying, information for a loan as if the lender was entirely dependent on the property as security to protect its investment.

In order to be eligible to participate in the DE Program, a mortgage lender must have a qualified underwriter on staff.

References:

• For information on the qualification criteria for, and responsibilities of, the underwriter, see HUD 4155.2 2.A.4.
• For information on lender eligibility criteria for the DE Lender Program, see HUD 4155.2 2.A.2.

The mortgage lender is responsible for ensuring that no sanctions exist against their underwriter. Likewise, the underwriter cannot have any delinquent Federal debt.

An underwriter may not be listed on the

• General Services Administration (GSA) List of Parties Excluded from Participation in Federal Government Procurement and Non Procurement Programs
• HUD's Limited Denial of Participation (LDP) List, or
• FHA Credit Alert Interactive Voice Response System (CAIVRS).

References: For more information on

• HUD's LDP List and the GSA List, see HUD 4155.1 4.A.7, and
• using CAIVRS to determine eligibility for federally-related credit, see HUD 4155.1 4.A.8.

The mortgage lender must register each underwriter in FHA Connection.

By registering the underwriter in FHA Connection, the mortgage lender certifies that the underwriter meets the necessary qualifications, as described in HUD 4155.2 2.A.4.a.

Reference: For more information on FHA Connection, see HUD 4155.2 1.D.

Mortgage lenders may use an Automated Underwriting System (AUS) that employs the FHA Technology Open To Approved Lenders (TOTAL) mortgage scorecard.

These systems evaluate loan application elements, including information on the applicant's

• income
• credit history
• cash reserves, and
• mortgage loan.

AUS data is used to provide an underwriting recommendation that either the

• borrower credit and capacity are acceptable, or
• loan application must be referred to an individual underwriter.

Important: An AUS does not evaluate property acceptability; for this, an individual underwriter must review the appraisal.

Reference: For more information on the TOTAL scorecard

• see HUD 4155.1 6.A.1, and
• Mortgagee Letters (ML) 2004-01; 04-44; 04-47; 05-15.