Mortgage Credit Reject - Business Background

Mortgage Credit Reject is used to maintain borrower mortgage credit rejection information for a direct endorsement (DE) case. It cannot be used, however, for a DE Home Equity Conversion Mortgage (HECM) case. An FHA-approved underwriter may determine that a borrower poses a credit risk and is ineligible for a mortgage.

A lender can add, update, delete, or view borrower mortgage credit rejection information for a non-endorsed DE case, depending on the authorization(s) associated with the lender's FHA Connection ID. Mortgage credit reject records for non-DE cases can be viewed only.

For preclosing DE cases only, the initial mortgage credit rejection record must be entered into HUD's origination system by the HUD Homeownership Center. Once the initial record is established, the lender can use Mortgage Credit Reject to maintain mortgage credit rejection records for the case. (A preclosing case is one that is being processed by a newly authorized DE lender or a lender that is under disciplinary action.)

If a borrower with a mortgage credit rejection record applies for another FHA-insured loan, the lender will be alerted when requesting a Case Number Assignment.

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

Mortgage Credit Reject - Business Background

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