II.A.7.b. Mortgagee Pre-Endorsement Review Requirements (09/14/15)

Owned by Kacey Olson
Nov 20, 2018
4 min read

© HUD Single Family Housing Policy Handbook 4000.1

When conducting the pre-endorsement review, the Mortgagee must review and verify the following items, as applicable. All documents must be legible.

Included in this section are:

i. Late Submission Letter
ii. Form HUD-92900-LT, FHA Loan Underwriting and Transmittal Summary
iii. Note (Including Any Secondary Mortgage)
iv. Security Instrument
v. Closing Disclosure and Settlement Certification
vi. Final Uniform Residential Loan Application
vii. Form HUD-92900-A, HUD/VA Addendum to Uniform Residential Loan Application
viii. Credit Report(s)
ix. CAIVRS Report
x. Asset Verification
xi. Gift Letter
xii. Secondary Financing Documentation
xiii. Income Verification
xiv. Evidence of the Social Security Number
xv. Form HUD-92300, Mortgagee’s Assurance of Completion
xvi. Form HUD-92051, Compliance Inspection Report or Fannie Mae Form 1004D, Appraisal Update and/or Completion Report
xvii. Form NPMA-33, Wood Destroying Insect Inspection Report
xviii. Local Health Authority’s Approval for Individual Water and Sewer Systems
xix. New Construction Exhibits
xx. Form HUD-92800.5b, Conditional Commitment and Direct Endorsement Statement of Appraised Value
xxi. Appraisal Report
xxii. Specialized Eligibility Documents
xxiii. Purchase Contract and Addenda

i. Late Submission Letter
ii. Form HUD-92900-LT, FHA Loan Underwriting and Transmittal Summary

Confirm that the form is completed. The form must be signed and dated by the underwriter, as applicable.

iii. Note (Including Any Secondary Mortgage)

Confirm that the Note is the Authoritative Copy, the Borrower name on the Note matches form HUD-92900-LT, and the required language from the Model Note is present. The Mortgagee must also confirm that:

  • the Note has been executed;
  • the mortgage amount is not higher than approved by the underwriter on form HUD-92900-LT or form HUD-92900-A;
  • the term of the Mortgage is the same as on the Uniform Residential Loan Application (URLA, Fannie Mae Form 1003/Freddie Mac Form 65), and reflects the correct FHA case number and Automated Data Processing (ADP) Code; and
  • all applicable allonges, agreements, and riders are properly executed.

For Test Cases and HUD employee Mortgages, the Mortgagee must ensure that the Borrower’s name on the Note matches form HUD-92900.4, Firm Commitment.

iv. Security Instrument

Confirm that the security instrument:

  • is the Authoritative Copy;
  • has been executed (along with all riders indicated on the last page of the security instrument);
  • includes the principal balance that is not higher than, and maturity date that is not different than, that approved by the underwriter; and
  • lists the same property address as the URAR (Fannie Mae Form 1003/Freddie Mac Form 65).
v. Closing Disclosure and Settlement Certification

Confirm that the Closing Disclosure or similar legal document is complete and signed by all required parties, and the Settlement Certification is complete and signed by the Borrower, seller (as applicable, except in case of HUD Real Estate Owned (REO) Sales), and settlement agent.

vi. Final Uniform Residential Loan Application

Confirm the URLA (Fannie Mae Form 1003/Freddie Mac Form 65) is signed and dated by the Mortgagee and all Borrowers. If the final URLA is not signed by the Mortgagee, the initial application signed by the Mortgagee is acceptable.

vii. Form HUD-92900-A, HUD/VA Addendum to Uniform Residential Loan Application

Confirm that form HUD-92900-A, HUD/VA Addendum to Uniform Residential Loan Application, is completed as instructed on the form.

viii. Credit Report(s)

Confirm that the mortgage file contains a credit report for each Borrower; if the Property or the Borrower is located in a community property state confirm that the mortgage file contains a credit report for a non-borrowing spouse. If there are multiple credit reports, all credit reports must be submitted in the case binder.

ix. CAIVRS Report

Confirm that the mortgage file contains a clear Credit Alert Verification Reporting System (CAIVRS) report or documentation from the creditor agency to support the verification and resolution of the debt.

x. Asset Verification

Confirm that the mortgage file contains the Verification of Deposit (VOD) and/or bank statements.

xi. Gift Letter

Confirm that the mortgage file contains a gift letter if a gift is shown on form HUD-92900-LT.

xii. Secondary Financing Documentation

The Mortgagee must confirm that the mortgage file contains a copy of the subordinate loan agreement (Note), if applicable.

xiii. Income Verification

Confirm that the mortgage file contains verification of the Borrower’s income.

xiv. Evidence of the Social Security Number

Confirm that the mortgage file contains evidence of the Borrower’s Social Security Number (SSN).

xv. Form HUD-92300, Mortgagee’s Assurance of Completion

Confirm that form HUD-92300, Mortgagee’s Assurance of Completion, is completed and signed, if applicable.

xvi. Form HUD-92051, Compliance Inspection Report or Fannie Mae Form 1004D, Appraisal Update and/or Completion Report

Confirm that form HUD-92051, Compliance Inspection Report, or Fannie Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion Report, Part B, is completed, signed and dated by an approved inspector. Local government inspection with the underwriter certification may be accepted.

xvii. Form NPMA-33, Wood Destroying Insect Inspection Report

Confirm that the file contains the National Pest Management Association (NPMA) form NPMA-33, Wood Destroying Insect Inspection Report, or the state mandated infestation report, as applicable.

xviii. Local Health Authority’s Approval for Individual Water and Sewer Systems

Confirm that the file contains the Local Health Authority’s approval for Individual Water Supply Systems and sewer systems, if applicable.

xix. New Construction Exhibits

For New Construction, confirm that the documentation requirements found in the New Construction Product Sheet are in the mortgage file.

xx. Form HUD-92800.5B, Conditional Commitment and Direct Endorsement Statement of Appraised Value
xxi. Appraisal Report

Confirm that the original Fannie Mae Form 1004/Freddie Mac Form 70, Uniform Residential Appraisal Report (URAR), or other appropriate appraisal form, is complete and contains the Appraiser’s signature and date.

xxii. Specialized Eligibility Documents

Confirm that the mortgage file contains all required program-specific documents.

xxiii. Purchase Contract and Addenda

Confirm that the Sales/Purchase Contract, addenda, and the Amendatory Clause are signed by all Borrowers and sellers. The Amendatory Clause is not required on REO Sales, or 203(k) Mortgages.

Confirm that Real Estate Certification is signed by Borrowers, sellers, and selling real estate agent or broker if their signature is not contained within the purchase agreement.