Avista Solutions, a Web-based mortgage software company, has announced that its automated underwriting system (AUS) has been interfaced with the Federal Housing Administration’s (FHA) Technology Open to Approved Lenders (TOTAL) Scorecard. This interface allows lenders who are underwriting FHA loans to submit borrower information to the TOTAL Scorecard, which combines the capabilities of Avista’s AUS to determine whether a loan is eligible to be insured by FHA. The direct system to system interface between the Avista’s AUS and FHA allows approvals to happen in minutes, speeding up and simplifying the entire procedure for lenders and reducing origination costs in the process.
The interface with FHA is important to mortgage origination firms that don’t have a lot of time to waste, says Mark Phlieger, Avista’s CEO. “FHA is understandably busy at the moment, as it undergoes a renaissance in the use of its products and programs,” he explains. “By interfacing our automated underwriting capability with the TOTAL Scorecard, originators can get answers very quickly, without data reentry and other inefficiencies that can lead to mistakes and delays.” Phlieger feels that their interface with the FHA TOTAL Scorecard is just the tip of the iceberg when it comes to the vast potential of using technology to accelerate dealings with HUD. “The lending community understands the benefits of technology and process automation better now than ever before. FHA has a redefined mission these days and we are preparing for the technology innovations to come that will make dealing with HUD faster, easier and more efficient. Making the TOTAL Scorecard seamlessly available to our users is just the first step in that journey.”
To evaluate a prospective loan using the TOTAL Scorecard, Avista’s FHA-approved customers will simply enter a borrower’s data into Avista’s AUS, which transfers the data directly and seamlessly to the TOTAL Scorecard. The Scorecard automatically evaluates the information and transmits a risk classification of “Accept/Approve” or “Refer.” A feedback/findings report is then issued directly to the lender via the AUS. A “Refer” response requires the underwriter to perform a manual review of the borrower’s information and determine if he or she qualifies for the loan based on FHA’s credit policies and guidelines.
“The bottom line in this connectivity,” says Mark Phlieger, “is that lenders need to do less in order to get loans duly insured by FHA. They can do more loans with the same number of people, leading to process efficiencies and cost savings on every transaction.” FHA lending is becoming more technology-friendly and more accessible with each process-improving interface like the one with Avista, Phlieger feels, noting, “Technology is a labor-saving device, and this is a tangible, measurable way to save on the effort of originating FHA loans.”
For more information, visit AvistaSolutions.com.