Written By: Bonnie Wilt-Hild
Seems there have been a few issues lately with regard to Total Scorecard findings and validity as well as misconceptions with validity periods for both appraisals and credit documents (credit reports) on FHA insured mortgage types so I thought it not a bad idea to clear a couple of things up.
Need FHA Training? CLICK HERE: http://www.FHA-Classes.org
First, it seems that several companies have been running Total Scorecard without including the required FHA Case number information, this most likely initial runs for prequalification purposes and in many cases receiving a Total Scorecard Accept of Approve/Eligible. At later points however the loan is run with the case number, sometimes even after closing and the cases are receiving a refer which is causing issues for many lenders. For this I provide the following guidance where scoring events and Total Scorecard are concern and that being “that those scoring events, which transpire on transactions which have not been assigned a case number are not relevant and the outcome is subject to change. Only scoring events which transpire on a transaction with a case number are valid”. In short people, pull your case number and then run Total to be sure your findings are accurate and valid.
Next there seems to be some misunderstanding where age of documents/appraisal is concerned with regard to new construction versus existing construction. As stated in the 4155.1 credit documents for new construction are good for 180 days and finally for 120 days on existing construction cases. This should not be confused with appraisal validity dates and those being 120 days across the board for both new and existing construction. As far as credit reports are concerned, it is also important to mind the report date of each individual account. Often times creditor’s information date reflects the month preceding the actual date of the credit report and therefore individual trades may expire sooner (be greater than 120 days per the actual reference date) than the actual credit report does. In these cases I recommend a credit supplement. If you are doing soft pulls on all case types including FHA mortgage types, this would most like solve an expired reference issue.
Need FHA Training? CLICK HERE: http://www.FHA-Classes.org
In closing I will stay be careful. I have many people who believe the Total Scorecard expiration date is the file expiration date and pay little regard to actual document and appraisal expiration dates. Honestly I update everything after 90 days regardless if it is new or existing construction just seems safer that way considering a lot can change in three months. As always everyone, happy underwriting and have a great week.
About The Author
Bonnie Wilt-Hild - As an NAMP® staff writer, Bonnie currently serves as a senior instructor for FHA Online University (www.FHA-Classes.org) as well maintains a full-time mortgage underwriting position as the Senior FHA DE Underwriter for a major lending institution. With over 25+ years of senior-level FHA/VA Government underwriting experience, Bonnie is considered the "Queen of FHA Loans". If you're interested in becoming a writer for NAMP®, please email us at: contact@mortgageprocessor.org.
