What is the FHA TOTAL Scorecard?
The FHA TOTAL Scorecard (Technology Open To Approved Lenders) was developed by HUD to evaluate the credit risk of FHA loans that are submitted through 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" or "Refer." An "Accept" 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 the borrowers' mortgage credit risk profile, makes a recommendation of "Accept" or "Refer," and provides the recommendation back to AUS. The AUS in turn provides the recommendation including feedback messages to the lender.
What are the steps for Automated Underwriting Systems (AUS) to integrate with FHA's TOTAL Scorecard?
The steps that Automated Underwriting System (AUS) vendors must follow in order to be certified to integrate with FHA's TOTAL Scorecard are:
- Automated Underwriting System (AUS) vendors must review FHA Total Scorecard Developer's Guide, FAQs, and User Guide. A link to the documents and description is provided under the Additional Information section on this page. Contact SFAdmin@hud.gov with any technical questions regarding the FHA TOTAL Scorecard Developer's Guide. Contact the FHA Resource Center with any policy questions.
- AUS vendors must request a User ID and Password from the FHA Resource Center to send and receive transactions from TOTAL Scorecard. AUS vendors must provide their company name, company address, contact name, contact phone number, and contact email in the request to the FHA Resource Center. Initially AUS vendors will be provided access to the TOTAL Scorecard test environment. After AUS vendors complete the steps described below, they will be provided access to the TOTAL Scorecard production environment.
- AUS vendors must provide FHA with their FHA AUS feedback messages for review. It is recommended that AUS vendors provide the feedback messages as early in the process as possible in order to avoid integration delays. FHA will review the messages and discuss any concerns with content with the AUS vendor. FHA does not approve the feedback messages; but must ensure that the content accurately reflects FHA policy.
- Vendors must review and sign TOTAL Scorecard Vendor Agreement and Certification and mail two copies of signed agreement to FHA. FHA will sign the agreements and send one signed copy back to the AUS vendor.
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.
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.
If you have any questions regarding the FHA TOTAL Scorecard or require additional information, please visit the FHA Resource Center.