The Federal Housing Administration (FHA) recently 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 launch of FHA’s first direct automated underwriting system is a huge milestone for the over one million borrowers on average who rely on FHA insurance annually,” said Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade. “We’re excited to deliver this enhanced automated underwriting capability specifically for FHA-insured lending because it will streamline processes for everyone, including consumers.”
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
– Enhanced data synchronization between loan origination systems and FHA Catalyst through state-of-the-art Application Programming Interface (API) technology
“When coupled with our recent launch of FHA Catalyst Electronic Appraisal Delivery capabilities, the new AUS adds to the core pieces we need in order to deliver a fully consolidated FHA case record, with all loan and borrower data in one place,” said Deputy Assistant Secretary for Single-Family Housing Joe Gormley.
The AUS will be available in FHA Catalyst for single-family forward mortgage programs on or after Oct. 30, 2020. To begin using the new AUS, lenders or their loan origination system technology vendors will need to build an interface between the module and their loan origination systems using a technical specification document available by contacting the FHA Resource Center. The FHA Catalyst: Single Family Origination Module–AUS is an automated underwriting option for lenders to use, but will not be required to replace lender use of other automated underwriting systems that accommodate FHA-insured mortgages through interfaces with FHA’s TOTAL Mortgage Scorecard.
FHA Catalyst is FHA’s multi-year technology modernization initiative and is supported by a $40 million appropriation from Congress. FHA Catalyst is a secure, flexible, cloud-based platform that will provide a modern, automated system for use by lenders, servicers, and other FHA program participants, while enabling FHA to more efficiently and effectively manage its programs and processes. Today, lenders and servicers are using enhanced FHA Catalyst functionality for electronic submissions of previously paper-based case binder submissions and many FHA insurance claim types.
Find out more about FHA Catalyst on our new FHA.gov website at fha.gov/fha-catalyst.html