Firm Commitment
Business Background

The Firm Commitment is a promise by HUD to insure a mortgage for a specific borrower and property based on the designated terms and conditions. If HUD determines that the borrower is not credit worthy for the mortgage, a Firm Commitment Reject (Firm Reject) is issued instead. Firm Commitment is used to view and print the Firm Commitment form issued by HUD for a HUD-processed case or a test case processed by a lender seeking unconditional direct endorsement DE authority.

Pre-closing test case for unconditional DE authority: A Firm Commitment (Firm Accept) or Firm Reject is issued before mortgage closing. This is applicable to cases for which the pre-closing test phase began before May 15, 2017.
Post-closing test case for unconditional DE authority: After mortgage closing, a Firm Accept is automatically issued when the mortgage is endorsed for FHA insurance through Insurance Application or HECM Insurance Application. A Firm Reject is automatically issued if insurance is denied (i.e., Notice of Return (NOR) is issued). This is applicable to cases for which the post-closing test case phase began on or after May 15, 2017.
HUD Employee Loans (Program ID 05): A Firm Commitment (Firm Accept) or Firm Reject is always issued before mortgage closing regardless of the lender’s unconditional DE or test case status.

You can access Firm Commitment through the following sequence of FHA Connection links: Single Family FHA, Single Family Origination, Case Processing, and Firm Commitment.

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Firm Commitment Business Background

See Also

Firm Commitment
Business Background