FHA Announces New Automated Underwriting System for Lenders

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The Federal Housing Administration (FHA) has launched a new automated underwriting system (AUS) for single family forward mortgages.

The “FHA Catalyst: Single Family Origination Module –AUS” enables lenders to electronically enter loan application data for single family forward mortgages “from their loan origination systems directly to the module” and receive automated mortgage insurance eligibility indicators directly from the FHA.

“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,” Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade said in FHA’s announcement. “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 will be available starting on Friday, Oct. 30. To start using it, 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,” which can be made available to them by getting in touch with the FHA Resource Center. 

Lenders are still able to use other automated underwriting systems that “accommodate FHA-insured mortgages through interfaces with FHA’s TOTAL Mortgage Scorecard”

The new automated underwriting system offers a number of features, such as “detailed feedback certificates that provide specific and actionable information for lenders” as well as “integrated submission of credit report data reissuances.” This means lenders will no longer need to utilize third-party routing systems. Another feature offered by the new AUS is that it “gives enhanced data synchronization between loan origination systems and FHA Catalyst.”

“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,” Deputy Assistant Secretary for Single Family Housing Joe Gormley said in the announcement.

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