FHA – Debt Not Reported on Credit Report: Why will TOTAL not accept a debt that is not reported on the credit report? NEW MTP™ – What Triggers an FHA Manual Underwriting Requirement?
Answer: FHA requires a downgrade to manual underwriting when the mortgage file contains information or documentation that cannot be entered into or evaluated by TOTAL Mortgage Scorecard. TOTAL can’t “read” a credit supplement. Reference: 4000.1, II, A, 4, a v. Accept Risk Classifications Requiring a Downgrade to Manual Underwriting (TOTAL) The Mortgagee must downgrade and [...]