1. Verify your company is approved for FHA
and is sponsored by Flagstar Bank.
• Your corporate office will have this information and
your HUD-approved ID number.
• Your HUD ID number consists of 10 digits and is also
your origination ID number.
• Your Sponsor ID number is Flagstar Bank’s HUD-
approved ID number and is 7127400001.
2. If you are approved by HUD and not
currently sponsored by Flagstar Bank,
contact your local account executive for the
FHA applications for sponsorship.
1. If you are approved, take a complete and accurate
loan application from your borrower.
2. Verify your loan amount is within the FHA loan limit.*
3. Complete a Good Faith Estimate and Truth in
Lending. Both disclosures must be dated within
three days of your initial loan application and
provided to underwriting at time of submission.
• * FHA loan limits are based on property location. To verify your loan amount does not exceed the FHA
Maximum Mortgage Limit refer to: https://entp.hud.gov/idapp/html/hicostlook.cfm
4. Obtain copy of borrower’s pay stub and calculate income
on monthly basis. Must determine if borrower is hourly,
salary, self-employed, commissioned etc, and calculate
income based on FHA income/employment guidelines in
the 4155.1Rev 5 Credit Manual located on our Web site.*
5. A complete list of the FHA forms and disclosures needed
for each type of loan transaction is located on our
• * Locate the FHA Credit Manual (4155.1 Rev. 5) on our Web site. Log in to our Web site and click on
Tools and then click on Industry Links. This manual is located under Ginnie Mae links.
• ** FHA Forms and Disclosures. Log in to our Web site and click on Seller’s Guide, then 9000 Gov
Guidelines. Click on Doc. #9005 and then choose the transaction type at the top of this document for a list
of required FHA forms and disclosures and completion instructions.
1. Enter application data into your LOS system and export the
file to Flagstar Bank Loantrac Web site.*
2. Register as an FHA loan and complete the Government
Lending section in our Loantrac system.
3. Send loan data through AUS/Credit Submission. Choose
either DU or LP. Reminder: DU and LP do not make the
loan decision. The loan data entered is automatically sent
to the FHA Total Scorecard System for a loan decision.
4. Obtain findings and credit report through the FHA Total
Scorecard System and verify data entered into system is
accurate to the findings data (i.e., income, assets, loan
amount, rate, PITI and reserves).
• * Live training is available for Government Loan data entry and exporting instructions. Please refer to
our Web site under Help & Training and choose Live WebEx Training. You can review the current day,
upcoming, daily and weekly sessions available.
5. Determine if Total Scorecard response is Approve, Accept or
6. If response is Refer, review Doc. #9340 on our Web site for the
documentation required for underwriting submission. A Refer
response for credit issues requires explanation letters and/or
additional documentation to justify approval. A Refer response for
a ratio issue requires compensating factors to justify approval.*
7. If your loan received an Approve or Accept response and the data
integrity is accurate, no explanation letter is required for any late
payments on trade lines; no collections need to be paid and
excessive ratios do not require any compensating factors for
approval. Other documentation waivers may apply.
8. * Doc. #9340. FHA Refer Response Helpful Hints Checklist. Log in to our Web site and click on Seller’s Guide,
then 9000 Gov Guidelines. Click on Doc. #9340 located under FHA Forms/Disclosures/Product Descriptions.
8. If the data integrity is accurate and the file does not obtain
an Approve, Accept or Refer response, the loan will
automatically be manually underwritten.
9. Order CAIVR (Credit Alert Interactive Voice Response)
number for all borrowers through the FHA Connection
System. Enter the CAIVR in your LOS system in order for
this information to be included on your Mortgage Credit
10. A defaulted or claim on the CAIVR number requires an
exception for approval by underwriting.
11. If loan is a refinance or a purchase with property address,
order Case Number Assignment through the FHA
Connection System. Not applicable if loan submission is
for a TBD property.*
12. A CAIVR number and Case Number Assignment are not mandatory to
obtain a valid response through the FHA Total Scorecard System. If the
CAIVR number and Case Number are not provided at time of loan
submission, both will be a condition of loan approval.
13. Choose the Government Underwriting New Submission cover sheet from
our Loantrac system and provide as many documents as possible from the
list provided on the cover sheet.
14. Note. If the FHA Total Scorecard does not return an Approve, Accept or
Refer response, you will not be able to choose the Government
Underwriting New Submission cover sheet in our Loantrac system. You
must obtain the cover sheet in our Seller’s Guide, Doc. #3218, from our
Web site. Complete the cover sheet and upload or fax it with the other
15. Include a separate cover letter to Underwriting if there are any unusual
circumstances that will assist the underwriter during the underwriting
16. Your submission can include limited documentation or as much as you
prefer. The more documents that are provided up front, the fewer conditions
you should have on your approval letter.
17. Upload or fax your loan documents to Flagstar.
18. Underwriting turn time varies from day to day. You can check the
government turn time hours on our Web site for purchases, refinances and
conditions on a daily basis.
19. After the underwriter has made the loan decision, you can view the approval
letter or denial letter in the Loan Information link on our wholesale Web site
20. An underwriter will call you with the loan decision. You can discuss any
conditions on the approval or discuss the reasons for loan denial at this
21. Once the loan is approved, begin to gather all conditions on the loan
22. You should order the appraisal at this time unless the loan was submitted as
a TBD property.*
23. All required standard forms and/or FHA forms that were not included with
your submission will be a condition on the approval letter.
* When ordering the appraisal, you must make sure the appraiser is both FHA-eligible and eligible by Flagstar Bank. This information can be found at
www.wholesale.flagstar.com. Click on Eligible Appraiser in the Search link. Locate the FHA appraiser under Eligible HUD FHA Appraisers first, and then
determine if the appraiser is Flagstar-eligible using the Search Criteria section.
24. Any income documentation, asset documentation etc., listed in
your FHA Total Scorecard findings report that was not included
with your submission will be a condition on the approval letter.
25. Review your approval letter and compare your conditions to the
findings from the FHA Total Scorecard findings report. If you have
questions regarding any conditions, you can contact the
underwriter or contact the Government Underwriting Support Desk
at (800) 447-7181, option 2, for additional assistance.
26. After all conditions are obtained, upload or fax the conditions to
Underwriting. Choose the Underwriting Conditions Cover sheet
from our Loantrac system.
27. When the conditions have been reviewed by underwriting, the
status of your loan will be updated and you can review the
updated approval letter in the Loan Info Link on our Web site.
28. It is important to send all conditions at one time in order to obtain
a Clear to Close on your loan.
1. Once the loan is Clear to Close, read all closing instructions carefully and
contact Underwriting if you have any questions prior to having the closing
2. If you are a broker, you must order your closing package through
Government Wholesale Lending. Closing package order requests can be
found on our Web site, Doc. #9321. It is important that this form be
completed in its entirety and accurately to avoid any closing delays. If you
are a correspondent, you can prepare your own closing package.*
3. Set closing date and close loan according to the approval letter closing
4. If you are a broker, the closing agent at the title company must deliver the
closing package to Flagstar Bank after closing. If you are a correspondent,
you are responsible to deliver the closing package to Flagstar Bank after
5. Loan will be post-closed by Flagstar Bank. If there are any post closing
errors, your Errors and Omissions report will be updated on our Web site.
* In order to prepare your own closing package, your company must complete a Live WebEx on WBCD (Web-Based
Closing Docs) for approval.
Additional Helpful Hints
• Government Underwriting has the capability of
conducting a videoconference with the processor,
loan officer or both. To utilize this feature, contact
• Government Underwriting Support can be contacted
at (800) 447-7181, option 2.
• E-mail Government Underwriting at
firstname.lastname@example.org for additional
guidelines or technical support issues.