Origination ActivitiesQuestion 252 of 400
An FHA loan is run through an automated underwriting system. Which scorecard evaluates the credit risk for FHA loans?
a.Desktop Underwriter Scorecard
b.TOTAL Scorecard
c.Loan Prospector Scorecard
d.Closing Disclosure Scorecard
Explanation
FHA uses the TOTAL (Technology Open To Approved Lenders) Scorecard, which runs through DU or LPA to assess credit risk on FHA-insured loans. DU and LPA are the underlying systems, and there is no Closing Disclosure scorecard.
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