HUD Handbook 4000.1 Part II.A.4
HUD Handbook 4000.1 Part II.A.4 covers FHA's automated-underwriting regime via the TOTAL Mortgage Scorecard — the AUS rules, downgrade triggers to manual underwriting, rescore obligations, and the foundational credit-report requirements that underpin every TOTAL decision. Fills part of the FHA-origination library gap (HUD 4000.1 Part II) identified in the 2026-05-25 coverage audit.
Verbatim regulatory text
Verbatim provisions from HUD Handbook 4000.1 Part II.A.4 — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
HUD Handbook 4000.1 II.A.4.a — Risk classifications requiring a downgrade to Manual Underwriting
The Mortgagee must downgrade and manually underwrite any Mortgage that received an
HUD Handbook 4000.1 II.A.4.a.vi — Cease AUS use on downgrade to manual underwriting
the Mortgagee must cease its use of the AUS and comply with all requirements for manual underwriting when underwriting a downgraded Mortgage.
HUD Handbook 4000.1 II.A.4.a.vii — TOTAL Mortgage Scorecard rescore on data change
The Mortgagee must rescore a Mortgage when any data element of the Mortgage change and/or new Borrower information becomes available.
HUD Handbook 4000.1 II.A.4.b.i — Credit report for each Borrower obligated on the Note
The Mortgagee must obtain a credit report for each Borrower who will be obligated on the mortgage Note.
HUD Handbook 4000.1 II.A.4.b.i — Non-borrowing spouse credit report in community property states
The Mortgagee must also obtain a credit report for a non-borrowing spouse if the Borrower resides in a community property state, or if the subject Property is located in a community property state, except when excluded by state law.
Operationalizing HUD Handbook 4000.1 Part II.A.4
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
To work from the whole rulebook rather than this one page: download the corpus — every register on this site, verbatim, each with its source snapshot and effective date — then follow the methodology. It asks your assistant to answer only from the downloaded text, cite the register id and effective date it used, and tell you when the corpus does not cover something instead of filling the gap from memory. Running it locally also means no one sees which regulations you are looking at.
Source of record: https://claudeforcompliance.com/regs/hud-4000-1-ii-a-4/
· register hud-4000-1-ii-a-4 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.