COMPLIANCE HOT TOPIC
AUS Reporting Requirements
I understand the new HMDA rules require reporting of automated underwriting system (AUS) information effective January 1, 2018, but how do you determine what to report if we use more than one AUS or pull results several times?
The new HMDA rules require the reporting of AUS information if a mortgage lender used an AUS to evaluate the application. Below are guidelines for determining which AUS or AUSs and which result or results to report in such a case:
- Determine whether the AUS used to evaluate the application matches the loan type reported (i.e. Total Scorecard for an FHA loan).
- If so, determine whether you obtained only one result from that AUS. If so, report that information.
- If you used an AUS that does not match the loan type reported or if you obtained more than one result from the AUS that matches the loan type reported, determine whether an AUS that was used to evaluate the application matches the purchaser, insurer, or guarantor (if any) for the loan (i.e. Desktop Underwriter for a loan that Fannie Mae purchased).
- If so, and you obtained only one result from that AUS report that information.
- If you did not use an AUS that matches the purchaser, insurer, or guarantor or if you obtained multiple results from an AUS that matches the purchaser, insurer, or guarantor or loan type, you report the result that is closest in time to the credit decision and the AUS that generated that result.
- If you simultaneously obtain multiple results closest in time to the credit decision, you report each of the multiple AUS results that you obtained and the AUSs that generated each of those results up to a total of 5 results and 5 AUSs. You should never report more than 5 results or 5 AUSs (in such case, only choose 5 AUSs and 5 results to report).