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Mortgage Credit Reject - Processing

The basic procedure for processing Mortgage Credit Reject includes the following:

• Get case information
• Add, update, or delete a mortgage credit rejection record
• Review processing results
  

You can add, update, or delete records for non-endorsed direct endorsement (DE) cases depending on the authorization(s) associated with your FHA Connection ID. Otherwise, records can only be viewed.

Getting Case Information

1. On the Mortgage Credit Reject page, enter the case number assigned to the mortgage loan in the FHA Case Number field.
   
   
2. Click Send. If there is no error, either the Mortgage Credit Reject Update page or the Mortgage Credit Reject List page appears. The Mortgage Credit Reject Update page appears if the case has no existing mortgage credit rejection record. If it does, the Mortgage Credit Reject List page appears.
   
   -or-
   
   If there is an error, the Mortgage Credit Reject page appears with an error message above the FHA Case Number and an Error(s) Detected field below it in the Details section. Review the information in these fields. Make the required correction and process again.

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Adding a Record

When adding the first mortgage credit rejection record for a case, the Mortgage Credit Reject Update page is displayed. Some of the fields in the Mortgage Credit Reject Update page may be pre-filled, depending on prior case processing. If a case already has one or more mortgage credit rejection records, the Mortgage Credit Reject List page is displayed.

1. If the Mortgage Credit Reject List page appears, review the current list of borrowers. If it is appropriate, select Yes to answer the question Do you wish to add a new borrower? The Mortgage Credit Reject Update page is displayed.
   
   
2. On the Mortgage Credit Reject Update page, review the case information. If the code in the ADP Code field is incorrect, delete it and type the correct code. You can click to look up the appropriate ADP Code.
   
   
3. Complete the Borrower Information and Worksheet Information sections of the Mortgage Credit Reject Update page. You can use these documents as the sources of information: Uniform Residential Loan Application (URLA) - Fannie Mae form 1003, Freddie Mac form 65, HUD Addendum to Uniform Residential Loan Application - form HUD-92900-A, Appraisal Report, and FHA Loan Underwriting and Transmittal Summary - form HUD-92900-LT.

Completing the Borrower Information Section

1. Enter the last name, first name, and middle initial of the borrower in the Borrower (or Coborrower) field, or make any necessary changes to the name displayed. Get the information from the URLA, Section 1: Borrower Information and form HUD-92900-A and/or URLA - Additional Borrower.
   
   
2. Select the type of identification for the borrower from the drop-down list box in the Ind field. Then, enter the borrower's ID in the SSN/TIN field, or make any necessary changes to the ID displayed. Get the information from the URLA, Section 1: Borrower Information and form HUD-92900-A.
   
   Note: Use TIN for an Employee Identification Number (EIN).
   
   
3. Select the borrower's ethnic background by clicking the appropriate check box in the Ethnicity field. More than one can be selected. This information is optional. Get the information from the URLA, Section 8: Demographic Information.
   
   
4. Select the borrower's race by clicking the appropriate check box in the Race field. More than one check box can be selected. This information is optional. Get the information from the URLA, Section 8: Demographic Information.
   
   
5. Select the borrower's gender by clicking the appropriate check box in the Sex field. More than one can be selected. This information is optional. Get the information from the URLA, Section 8: Demographic Information.
   
   
6. Answer the following questions for a loan application taken in person: Was the ethnicity of the Borrower collected on the basis of visual observation or name?, Was the sex of the Borrower collected on the basis of visual observation or name?, and Was the race of the Borrower collected on the basis of visual observation or name?

   •	If the demographic information was collected through a face-to-face interview, Yes or No must be selected from the drop-down list for each question.
   •	If the demographic information was collected through any method other than a face-to-face interview, leave these fields blank.
   •	If the borrower is a nonprofit or corporation, leave these fields blank. However, for any co-borrower of a corporation, Yes or No must be selected from the drop-down list for each question if the demographic information was collected through a face-to-face interview.
   Get the information from the URLA, Section 8: Demographic Information.

   
   
7. Make a selection from the drop-down list in the The Demographic Information was provided through field. If Face-to-Face Interview is selected, the above questions must be answered (see step 8). Get the information from the URLA, Section 8: Demographic Information.
   
   
8. Repeat steps 1-7 for a co-borrower as applicable.
   
   Notes:

   •	You can click Add Another Borrower to add another co-borrower.
   •	For a nonprofit agency borrower, a co-borrower is not permitted.
   •	For a government entity borrower, the co-borrower must also be a government entity.

   
   
9. Select Yes or No in the Exempt from SSN field. If the borrower is an individual and Yes is selected, the borrower or co-borrower must be exempt from obtaining a Social Security Number. Also, N/A must be selected for the borrower's/co-borrower's identification (SSN/TIN) and the boxes for the ID number left blank. If the borrower is not an individual, select No. Get the information from IRS form W-8 or other documentation providing conclusive evidence.
   
   
10. Select Yes or No in the First Time Home Buyer field. If Yes is selected, the borrower must be an individual/occupant. If there are two borrowers, only one needs to qualify as a first time home buyer.
    
    
11. Select the purpose of the mortgage from the drop-down list in the Loan Purpose field. Your choice must be consistent with the ADP Code and Borrower Type.
    
    
12. Select the classification of the borrower from the drop-down list in the Borrower Type field Get the information from the Appraisal Report and URLA - Section 1: Borrower Information and Section 4: Loan and Property Information.
    

Completing the Worksheet Information Section

Do not enter dollar signs, commas, or cents in fields requiring a monetary amount.

1. Enter the contract sales price of the property in the Sales Price field (1000 to 9999999). Leave this field blank for a refinance case. Get the information from the Appraisal Report, Form HUD-92900-LT, and URLA - Lender Loan Information.
   
   
2. Enter the mortgage amount, excluding upfront mortgage insurance premium, in the Mortgage (w/o UFMIP) field. Get the information from form HUD-92900-LT and URLA - Lender Loan Information.
   
   
3. Enter the total monthly income of all borrowers in the Total Monthly Income (gross) field. For a streamline refinance case, leave this field blank. Get the information from form HUD-92900-LT URLA (and URLA - Additional Borrower, if applicable) Section 1: Borrower Information.
   
   -or-
   
   
4. Select the Borrower Rating from the drop-down list for Credit Characteristics, Adequacy of Income, Stability of Income, and Adequacy of Avail. Assets fields.
   
   
5. Enter the ratio in the Loan-to-Value field. Up to five numeric characters can be entered. Examples: 100.00, 92.47, or 81.5. Get the information from form HUD-1.
   
   
6. Enter the ratios in the Mtg Payment-to-Income and Fixed Payment-to-Income fields. Up to two numbers with one decimal place can be entered (1 to 99.9). Examples: 3.5, 7, or 11.6. Get the information from form HUD-92900-LT.
   
   
7. Enter the date the borrower's mortgage credit was rejected in the Credit Denial Date field. Use an mm/dd/yy format. Get the information from form HUD-92900-LT.
   
   -or-
   
   Click to select the date.
   
   
8. Enter the underwriter's FHA ID in the Underwriter ID field. Get the information from form HUD-92900-LT.
   
   Note: You can click to search for an underwriter, if you are authorized.
   
   
9. Optionally, a comment can be entered in the box provided in the Comments field. The comment cannot be longer than 138 characters or more than two lines.
   
   
10. Click Send. Review the processing results.

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Updating a Record

An existing mortgage credit rejection record can be updated if there is an error or information has changed. The case must still be non-endorsed.

1. After getting case information, the Mortgage Credit Reject List page appears. Click the radio button next to the borrower's name in the Borrower field. The Mortgage Credit Reject Update page appears.
   
   
2. Make any necessary changes to the ADP Code, Borrower Information, or Worksheet Information.
   
   Note: Be sure the answer is No to the question Do you wish to delete this record?
   
   
3. Click Send. Review the processing results.
   

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Deleting a Record

If a record was added in error or if the borrower's mortgage credit is later approved, delete the mortgage credit rejection record as follows:

1. After getting case information, the Mortgage Credit Reject List page appears. Click the radio button next to the borrower's name in the Borrower field. The Mortgage Credit Reject Update page appears.
   
   
2. Click Yes to answer the question Do you wish to delete this record?
   
   
3. Click Send. Review the processing results.
   

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Reviewing Processing Results

After clicking Send on the Mortgage Credit Reject Update page, the information is processed. You are notified if processing was successfully completed or if there are errors that need to be corrected before processing can be completed.

Processing Was Successful

Processing Was Unsuccessful

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See Also

Mortgage Credit Reject - Business Background

Mortgage Credit Reject Page - Field Description

Mortgage Credit List Page - Field Descriptions

Mortgage Credit Reject Update Page - Field Descriptions

Mortgage Credit Reject Results Page - Field Descriptions

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