Automated Underwriting System (AUS) - Business Overview

Purpose: Explains how the Automated Underwriting System evaluates loan applications and makes approval decisions automatically.

Audience: Internal team members, product managers, QA, support staff, and anyone needing to understand how applications are approved or denied.

Last Updated: 2026-01-04

What is AUS?

The Automated Underwriting System (AUS) is a set of business rules that automatically evaluate loan applications to determine if borrowers qualify. Think of it as a digital checklist that checks:

• Is the borrower old enough?
• Does the borrower have a good credit score?
• Is the property an eligible type?
• Are there recent bankruptcies or foreclosures?
• Does the debt-to-income ratio make sense?

Instead of manually reviewing every application detail, AUS rules run automatically at key points in the application process and make instant decisions.

Why We Use AUS

Speed: Decisions happen in seconds instead of hours or days Consistency: Every application is evaluated using the same criteria Compliance: Ensures lending guidelines and regulations are followed Risk Management: Identifies high-risk applications early Efficiency: Only truly problematic cases need human review

Three Types of Decisions

When an AUS rule evaluates an application, it can make three types of decisions:

1. Knockout (Immediate Disqualification)

What Happens: The borrower sees a pop-up message immediately and cannot continue.

When Used: For serious issues that absolutely disqualify someone, like:

• Credit score too low (e.g., below 640)
• Enrolled in credit counseling programs
• Recent bankruptcy (within 4 years)
• Recent foreclosure
• Property type not allowed (e.g., 5+ unit building)

Borrower Experience:

• Application stops immediately
• Clear message explains why they can't proceed
• Session ends; they cannot continue

Example Message: "Your credit score does not meet the minimum requirement for this program."

2. Adverse Action (Delayed Disqualification)

What Happens: The borrower sees a 60-second countdown before being logged out.

When Used: For serious credit-related issues that require regulatory disclosure:

• Credit score barely below minimum
• Severe payment delinquencies (120+ days late)
• Recent bankruptcy that requires notice

Borrower Experience:

• 60-second countdown timer appears
• Explanation of why they don't qualify
• Adverse action notice (required by law) is sent
• After countdown, session ends

Why 60 Seconds?: Federal law requires lenders to provide adverse action notices explaining credit-based denials. The countdown gives borrowers time to read the reason.

Example Message: "Based on information in your credit report, we are unable to offer you a loan at this time. You will receive an adverse action notice by email explaining this decision."

3. Manual Review (Soft Rule)

What Happens: The application continues, but creates a task for an underwriter to review later.

When Used: For items that need human judgment:

• Collections or charge-offs below certain amounts
• Late payments that are old or explained
• Credit report alerts that need clarification
• Manually added mortgages

Borrower Experience:

• Application continues normally
• May be asked for additional documentation later
• Underwriter will review during final approval

Example: Borrower has a $500 medical collection from 2 years ago. AUS flags it for review, but lets them continue. Underwriter later reviews and may approve if the debt is explained or paid.

When AUS Rules Run

Rules run automatically at specific points during the application:

Pre-Qualification Phase

Full Application Phase

Additional validation during income verification and final underwriting.

Rule Categories Overview

The AUS has 40+ rules organized into five categories:

1. Borrower Rules (4 rules) - Age, stated information, credit score, CLTV
2. Credit Analysis Rules (26 rules) - Credit scores, payment history, bankruptcies, collections
3. Property Rules (10 rules) - Building types, units, occupancy, property validation
4. Program Rules (2 rules) - Minimum loan amounts, draw requirements
5. Ratio Rules (1 rule) - Loan-to-draw ratio

Detailed Rule Explanations

Below are explanations for each rule in plain language, organized by category.

Category 1: Borrower Rules (4 Rules)

Rule: Borrower Age

Rule Code: BorrowerAge Decision Type: Knockout When It Runs: Pre-Qualification Step 9 (Credit Check)

What It Checks: Verifies that the borrower is at least 18 years old (or the configured minimum age).

Why It Matters: Federal law requires borrowers to be adults to enter into legally binding loan contracts. Minors cannot legally sign mortgage documents.

How It Works:

• System calculates the borrower's age from their date of birth
• Compares age to the minimum requirement (typically 18)
• If borrower is younger than minimum, they are immediately disqualified

Example:

• Pass: Borrower is 25 years old → Approved
• Fail: Borrower is 17 years old → Knockout

Borrower Message: "You must be at least 18 years old to apply for this loan."

Can Be Overridden?: No (legal requirement)

Rule: Stated Information

Rule Code: StatedInformation Decision Type: Knockout When It Runs: Pre-Qualification Step 8 (Has FBM)

What It Checks: Reviews borrower's self-declared credit events including:

• Recent bankruptcy filings
• Loan modifications
• Foreclosure proceedings

Why It Matters: These events indicate financial distress and significantly increase lending risk. Borrowers with recent negative credit events typically don't qualify.

How It Works:

• Borrower answers yes/no questions about credit history
• If borrower answers "yes" to any bankruptcy, modification, or foreclosure question
• Application is immediately stopped

Example:

• Pass: Borrower answers "No" to all questions → Continues
• Fail: Borrower indicates they had a loan modification → Knockout

Borrower Message: "Recent bankruptcy, foreclosure, or loan modification makes you ineligible at this time."

Can Be Overridden?: Rarely (depends on timeframe and circumstances)

Note: This is a preliminary check based on borrower's declaration. The system will verify this information later when pulling the credit report.

Rule: Credit Score (Stated)

Rule Code: CreditScore Decision Type: Varies (typically Knockout or Adverse Action) When It Runs: Pre-Qualification Step 8 (Has FBM)

What It Checks: Validates that the borrower's self-stated credit score meets the minimum threshold before pulling credit.

Why It Matters: Prevents unnecessary credit pulls on borrowers who clearly won't qualify. Saves time and preserves borrower's credit (avoids inquiry impact).

How It Works:

• Borrower selects their estimated credit score range
• System compares to minimum requirement (typically 640-680)
• If stated score is too low, stops before credit pull

Example:

• Pass: Borrower selects "680-699" when minimum is 640 → Continues to credit pull
• Fail: Borrower selects "580-599" when minimum is 640 → Knockout

Borrower Message: "Based on the credit score range you selected, you may not qualify for this program."

Can Be Overridden?: No at this stage (borrower can return when credit improves)

Rule: Maximum CLTV

Rule Code: MaxCltv Decision Type: Knockout When It Runs: Pre-Qualification (after property value determined)

What It Checks: Validates that the Combined Loan-to-Value ratio doesn't exceed the maximum allowed.

Why It Matters: CLTV measures total debt against property value. High CLTV means less equity cushion and higher risk of loss if property values decline.

How CLTV Is Calculated:

CLTV = (Existing Mortgage Balance + New Loan Amount) / Property Value × 100

How It Works:

• System calculates CLTV based on loan request and property value
• Compares to maximum allowed (typically 80-90%)
• If CLTV is too high, borrower must reduce loan amount

Example:

• Property Value: $500,000
• Existing Mortgage: $300,000
• New Loan Requested: $150,000
• CLTV: ($300K + $150K) / $500K = 90%
• If max allowed is 85% → Fail (must reduce new loan to $125K)

Borrower Message: "The combined loan amount exceeds the maximum allowed based on your property value."

Can Be Overridden?: Rarely (strict program requirement)

Category 2: Credit Analysis Rules (26 Rules)

Rule: CRD-005 - Manual Mortgage Check

Rule Code: CRD-005 Decision Type: Manual Review When It Runs: Pre-Qualification Step 10 (Mortgages)

What It Checks: Detects if borrower manually added a mortgage that wasn't automatically pulled from their credit report.

Why It Matters: Mortgages should appear on credit reports. A manually added mortgage might indicate:

• Very recent mortgage not yet reported
• Private/informal loan arrangement
• Data entry error
• Potential misrepresentation

How It Works:

• System pulls mortgages from credit report automatically
• Borrower can add additional mortgages manually
• If any manual mortgages exist, flags for underwriter review

Example:

• Credit report shows one mortgage ($250K)
• Borrower adds second mortgage ($50K private loan from family)
• System creates task: "Explain manually added mortgage"

What Happens:

• Application continues
• Underwriter reviews during final approval
• Borrower may need to provide documentation for manual mortgage

Can Be Overridden?: Yes (underwriter accepts with documentation)

Rule: CRD-011 - AVM Freshness Validation

Rule Code: CRD-011 Decision Type: Manual Review When It Runs: Pre-Qualification Step 10 (Mortgages)

What It Checks: Verifies that the automated property valuation (AVM) is recent enough to be reliable.

Why It Matters: Property values change over time. Old valuations may not reflect current market conditions, leading to incorrect LTV calculations and lending risk.

How It Works:

• System checks when the AVM data was generated
• Compares AVM date to expected closing date
• If AVM is too old (e.g., >90 days from closing), flags for review

Example:

• AVM generated: January 1, 2026
• Expected closing: June 1, 2026 (5 months later)
• If threshold is 90 days → Flagged for new AVM

What Happens:

• Application continues
• System may automatically order new AVM
• Underwriter verifies valuation is current

Can Be Overridden?: Yes (if market is stable or new AVM ordered)

Rule: CRD-018 - Credit Alert Messages

Rule Code: CRD-018 Decision Type: Manual Review When It Runs: Pre-Qualification Step 9 (Credit Check) and Step 9.5 (Co-Borrower)

What It Checks: Reviews alert messages from credit bureaus that may indicate issues with the credit report or borrower identity.

Why It Matters: Credit alerts can indicate:

• Identity theft or fraud
• Credit file disputes
• Deceased person's file (if joint account)
• File frozen or locked
• Security alerts

How It Works:

• Credit bureaus include alert messages with credit reports
• System scans for specific alert categories (configurable)
• Certain alerts require underwriter review before proceeding

Alert Categories That Trigger Review:

• Fraud alerts
• Active duty military alerts
• Credit freeze notifications
• Dispute statements
• ID verification issues

Example:

• Credit report includes "Active fraud alert - verify identity"
• System flags for manual review
• Underwriter contacts borrower to verify identity

What Happens:

• Application continues
• Task created: "Clear credit alert messages"
• Underwriter resolves before final approval

Can Be Overridden?: Yes (after underwriter verifies situation)

Rule: CRD-019 - Credit Response Alerts

Rule Code: CRD-019 Decision Type: Manual Review (Pending) When It Runs: Pre-Qualification Step 9 (Credit Check)

What It Checks: Reviews credit bureau response codes and alerts that indicate technical issues or data problems.

Why It Matters: Response alerts may indicate:

• Incomplete credit pull
• Bureau system errors
• Missing data from one or more bureaus
• Technical issues requiring re-pull

How It Works:

• System reviews credit bureau response codes
• Checks for error codes or incomplete data flags
• Creates review task if issues detected

Example:

• Credit pull returns: "Equifax data unavailable - retry"
• System flags for underwriter to re-pull credit

What Happens:

• Application pauses
• Underwriter may re-pull credit report
• Ensures complete data before continuing

Can Be Overridden?: Yes (if sufficient data from other bureaus)

Rule: CRD-023 - Credit Inquiries

Rule Code: CRD-023 Decision Type: Manual Review When It Runs: Pre-Qualification Step 9 (Credit Check)

What It Checks: Reviews recent credit inquiries to identify concerning patterns or unexpected credit applications.

Why It Matters: Multiple recent credit inquiries may indicate:

• Shopping for multiple loans (acceptable)
• Financial distress (seeking credit everywhere)
• Potential undisclosed debt (approved loans not yet on report)
• Identity theft

How It Works:

• System reviews inquiries from last 90 days
• Filters out certain inquiry types (rate shopping for same loan type is OK)
• Flags unusual inquiry patterns for explanation

Inquiries That May Trigger Review:

• Multiple credit card applications
• Auto loan inquiries (may indicate new debt)
• Personal loan inquiries
• Unusual number of inquiries (>10 in 90 days)

Example:

• Credit report shows 8 credit card inquiries in last 30 days
• System creates task: "Explain recent credit inquiries"
• Borrower explains they were rate shopping (acceptable)

What Happens:

• Application continues
• Underwriter reviews borrower explanation
• May require verification no new debt was incurred

Can Be Overridden?: Yes (with reasonable explanation)

Rule: CRD-025 - Credit Score Threshold ⭐ MOST COMMON KNOCKOUT

Rule Code: CRD-025 Decision Type: Knockout or Adverse Action (configurable) When It Runs: Pre-Qualification Step 9 (Credit Check) and Step 9.5 (Co-Borrower)

What It Checks: Validates that the borrower's actual credit score (from credit report) meets the minimum requirement.

Why It Matters: Credit scores predict likelihood of repayment. Lower scores indicate higher risk of default. This is the #1 reason applications are denied.

How It Works:

• System pulls tri-merge credit report (Experian, Equifax, TransUnion)
• Calculates representative credit score (middle of 3, lower of 2, or single score)
• For joint applications, uses lower of primary and co-borrower scores
• Compares to minimum threshold (typically 640-680)

Credit Score Calculation:

• 3 scores available: Uses middle score
  • Example: 680, 660, 640 → Uses 660
• 2 scores available: Uses lower score
  • Example: 680, 660 → Uses 660
• 1 score available: Uses that score (may not qualify)

Example - Individual:

• Scores: 670 (Experian), 655 (Equifax), 665 (TransUnion)
• Representative score: 665 (middle)
• Minimum required: 640
• Result: PASS

Example - Joint Application:

• Primary borrower: 720 representative score
• Co-borrower: 610 representative score
• Uses 610 (lower of the two)
• Minimum required: 640
• Result: KNOCKOUT

Borrower Message: "Your credit score does not meet the minimum requirement of [threshold]. Your representative score is [actual score]."

Can Be Overridden?: Sometimes (with strong compensating factors like high income, low debt, large down payment)

Typical Thresholds:

• Prime programs: 680-720
• Standard programs: 640-680
• Subprime programs: 580-640

Rule: CRD-027 - Representative Credit Score

Rule Code: CRD-027 Decision Type: Knockout When It Runs: Pre-Qualification Step 9 (Credit Check)

What It Checks: Validates that the borrower has enough valid credit scores from the three bureaus to calculate a representative score.

Why It Matters: Industry standard requires at least 2 valid scores from 3 bureaus. Single scores or no scores indicate:

• Insufficient credit history
• Thin credit file
• New to credit system
• File errors

How It Works:

• Counts how many bureaus returned valid scores
• Primary earner must have minimum number of scores (typically 2)
• Secondary earner may have lower requirement (typically 1)
• If insufficient scores, knockout

Valid Score Requirements:

• Minimum valid scores needed: 2 out of 3 bureaus
• Primary earner (higher income): Must meet full requirement
• Secondary earner: May have relaxed requirement

Example - Pass:

• Experian: 680
• Equifax: 660
• TransUnion: No score
• Result: 2 valid scores → PASS (uses 660, the lower of the two)

Example - Fail:

• Experian: 680
• Equifax: No score
• TransUnion: No score
• Result: Only 1 valid score → KNOCKOUT

Borrower Message: "You do not have sufficient credit history to qualify. At least 2 valid credit scores are required."

Can Be Overridden?: Rarely (industry standard requirement)

Solution for Borrowers: Build credit history by:

• Opening credit card accounts
• Making on-time payments for 6+ months
• Becoming authorized user on established accounts
• Taking small installment loan

Rule: CRD-029 - Late Mortgage Payments (Soft Pull)

Rule Code: CRD-029 Decision Type: Knockout or Adverse Action When It Runs: Pre-Qualification Step 9 (Credit Check)

What It Checks: Reviews existing mortgage payment history from the soft credit pull to identify late payments.

Why It Matters: Late mortgage payments are serious red flags. If a borrower can't pay their current mortgage on time, they're high risk for a new loan.

How It Works:

• Reviews mortgages identified in soft credit pull
• Checks for late payments in recent history
• Counts severity of late payments (30, 60, 90, 120+ days)
• Knockout if recent or severe late payments

Late Payment Thresholds:

• 30-day late: May be acceptable if >12 months ago
• 60-day late: Serious concern, recent ones knockout
• 90-day late: Very serious, typically knockout
• 120+ day late: Extreme risk, always knockout

Example - Pass:

• One mortgage, all payments current
• One 30-day late payment from 18 months ago
• Result: PASS (old late payment, otherwise clean)

Example - Fail:

• One mortgage showing 90-day late 3 months ago
• Result: KNOCKOUT or ADVERSE ACTION

Borrower Message: "Your mortgage payment history shows late payments that exceed our guidelines."

Can Be Overridden?: Sometimes (with explanation and evidence of resolution)

Rule: CRD-030 - Late Mortgage Payments (Hard Pull)

Rule Code: CRD-030 Decision Type: Knockout or Adverse Action When It Runs: Application Flow (after hard credit pull)

What It Checks: Similar to CRD-029 but uses data from the full hard credit pull during the application process.

Why It Matters: Hard pulls provide more detailed payment history. Catches issues that may not appear in soft pull.

How It Works:

• Reviews detailed mortgage tradelines from hard credit report
• Analyzes complete payment history (typically 24 months)
• More accurate than soft pull data

Difference from CRD-029:

• CRD-029: Uses soft pull (pre-qualification)
• CRD-030: Uses hard pull (application)
• Hard pull has more detailed history

Note: Currently being implemented for full application flow.

Rule: CRD-037 - Late Payment Dates

Rule Code: CRD-037 Decision Type: Manual Review (Soft Rule) When It Runs: Pre-Qualification Step 9 (Credit Check) and Step 9.5 (Co-Borrower)

What It Checks: Examines how recent late payments are on mortgages and other liabilities (credit cards, auto loans, etc.).

Why It Matters: Recent late payments are more concerning than old ones. Pattern of recent late payments indicates ongoing financial difficulty.

How It Works:

• Scans all tradelines for late payment dates
• Calculates days between late payment and current date
• If late payments within threshold (e.g., 12 months), flags for review

Thresholds (Configurable):

• Late payments >24 months ago: Generally acceptable
• Late payments 12-24 months ago: Flagged for review
• Late payments <12 months ago: Serious concern, manual review

Example - Manual Review Triggered:

• Credit card showing 60-day late payment from 10 months ago
• System creates task: "Explain recent late payment"
• Borrower provides evidence: Medical emergency, now resolved
• Underwriter may approve with explanation

What Happens:

• Application continues
• Task created requiring borrower explanation
• Underwriter reviews explanation and supporting docs

Can Be Overridden?: Yes (with acceptable explanation)

Rule: CRD-038 - All Debt Late Payments

Rule Code: CRD-038 Decision Type: Manual Review When It Runs: Application Flow

What It Checks: Comprehensive review of late payments across ALL debt types, not just mortgages.

Why It Matters: Pattern of late payments across multiple accounts indicates systemic payment issues, not isolated incidents.

How It Works:

• Reviews every tradeline (mortgage, auto, credit cards, student loans, personal loans)
• Counts late payments by severity and recency
• Flags patterns of late payment behavior

What Gets Reviewed:

• Credit cards
• Auto loans
• Student loans
• Personal loans
• Medical financing
• Retail credit accounts

Example:

• Credit card 1: Two 30-day lates in last 12 months
• Auto loan: One 30-day late 8 months ago
• Credit card 2: One 60-day late 6 months ago
• Pattern: Multiple recent lates across accounts → Manual review

What Happens:

• Creates task: "Explain pattern of late payments"
• Underwriter evaluates if problem is resolved
• May require evidence of improved payment behavior

Can Be Overridden?: Yes (with explanation and evidence of improvement)

Rule: CRD-039 - Consumer Credit Counseling Services ⭐ CRITICAL KNOCKOUT

Rule Code: CRD-039 Decision Type: Knockout When It Runs: Pre-Qualification Step 9 (Credit Check) and Step 9.5 (Co-Borrower)

What It Checks: Detects if borrower is enrolled in credit counseling or debt management programs.

Why It Matters: Credit counseling enrollment indicates:

• Severe debt problems
• Inability to manage debt independently
• Reduced monthly payment capacity
• High default risk

How It Works:

• Scans credit report tradeline comments for keywords
• Looks for phrases like:
  • "CCCS" (Consumer Credit Counseling Services)
  • "Consumer Credit Counseling"
  • "Debt Management Plan"
  • "Credit Counseling Program"
• Immediate knockout if found

Example - Knockout:

• Credit card account comment: "Account managed by CCCS"
• Result: Instant KNOCKOUT

Why This Is Serious: Credit counseling means:

• Borrower couldn't handle debts alone
• Currently in repayment program
• Monthly budget is already stretched
• Adding new loan payment would be impossible

Borrower Message: "Enrollment in a credit counseling or debt management program makes you ineligible for this loan."

Can Be Overridden?: Very rarely (only if program completed and graduated)

Solution for Borrowers:

• Complete credit counseling program
• Wait 6-12 months after graduation
• Demonstrate stable payment history
• Apply again

Rule: CRD-040 - CCCS Credit Card

Rule Code: CRD-040 Decision Type: Knockout When It Runs: Pre-Qualification Step 9 (Credit Check)

What It Checks: Checks if borrower has a credit card specifically issued by credit counseling services.

Why It Matters: CCCS-issued credit cards indicate recent completion of credit counseling program or ongoing enrollment.

How It Works:

• Reviews credit report for CCCS-issued credit accounts
• Checks borrower declarations for CCCS affiliation

Note: This declaration field is currently being implemented. For now, the rule is inactive.

Borrower Message: "Having a credit counseling credit card indicates recent enrollment in a debt management program."

Can Be Overridden?: Rarely

Rule: CRD-042 - Collections and Charge-offs (Non-Medical) ⭐ COMMON ISSUE

Rule Code: CRD-042 Decision Type: Manual Review (Soft Rule) When It Runs: Pre-Qualification Step 9 (Credit Check) and Step 9.5 (Co-Borrower)

What It Checks: Evaluates unpaid collections and charged-off accounts (excluding medical debts).

Why It Matters: Collections and charge-offs indicate:

• Unpaid debts
• Broken payment agreements
• Risk of legal action
• Pattern of non-payment

However, small or old collections may be acceptable with explanation.

How It Works - Two-Tier System:

Tier 1 - Recent Collections (e.g., last 12 months):

• Adds up total balance of all recent collections
• Compares to cumulative threshold (e.g., $2,000)
• If total exceeds threshold → Manual review

Tier 2 - Older Collections (e.g., 12+ months ago, up to 10 years):

• Reviews each collection individually
• Compares each to individual threshold (e.g., $1,000)
• If any single collection exceeds threshold → Manual review

What Gets Reviewed:

• Collection accounts (debt sent to collection agency)
• Charge-offs (creditor wrote off debt as loss)
• Excludes medical collections (separate rule)
• Only reviews items from last 10 years
• Only reviews open/unpaid accounts

Example - Pass:

• Collection from 5 years ago: $400 (paid)
• Collection from 3 years ago: $600 (unpaid but below threshold)
• Result: PASS

Example - Manual Review:

• Collection from 3 months ago: $500
• Collection from 6 months ago: $800
• Collection from 9 months ago: $900
• Total recent: $2,200
• If threshold is $2,000 → Manual review

What Happens:

• Application continues
• Task created: "Explain collections and charge-offs"
• Borrower may need to:
  • Pay off collections
  • Provide explanation
  • Show payment plan
  • Dispute if inaccurate

Can Be Overridden?: Yes (commonly, if explained or paid)

Typical Thresholds:

• Recent collections total: $1,500-$3,000
• Individual older collections: $500-$1,500

Rule: CRD-043 - Medical Collections

Rule Code: CRD-043 Decision Type: Manual Review When It Runs: Pre-Qualification Step 9 (Credit Check) and Step 9.5 (Co-Borrower)

What It Checks: Specifically evaluates medical collections separate from other debt collections.

Why It Matters: Medical debt is treated differently because:

• Often unexpected (emergencies)
• Insurance confusion common
• Not indicative of financial irresponsibility
• May be disputed or in negotiation

How It Works:

• Same two-tier system as CRD-042
• But only looks at medical collections
• Typically has higher thresholds (more lenient)
• Filters for debts marked as "medical" type

Example - Medical Collection:

• Emergency room bill: $5,000 in collections
• Borrower explains: Insurance denied, appealing
• Higher medical threshold: $7,500
• Result: Passes automatic check, but may still need underwriter review

Difference from CRD-042:

• CRD-042: Non-medical (credit cards, utilities, etc.) - Stricter
• CRD-043: Medical only - More lenient thresholds

What Happens:

• Application continues
• If exceeds threshold, task created
• Borrower explains situation
• Often approved if being paid or disputed

Can Be Overridden?: Yes (very commonly for medical debt)

Rule: CRD-045 - Outstanding Judgments

Rule Code: CRD-045 Decision Type: Manual Review When It Runs: Pre-Qualification or Application

What It Checks: Reviews borrower's declaration of outstanding legal judgments against them.

Why It Matters: Legal judgments indicate:

• Lost lawsuit
• Court-ordered debt
• Potential wage garnishment
• May have lien on assets

How It Works:

• Borrower answers declaration question: "Do you have any outstanding judgments?"
• If "Yes" → Flagged for manual review
• Credit report also scanned for public records

Examples of Judgments:

• Unpaid credit card lawsuit
• Landlord-tenant dispute
• Medical bill lawsuit
• Business debt judgment
• Tax liens (separate issue)

What Happens:

• Application continues
• Task created: "Provide written explanation of judgment"
• Borrower must provide:
  • Court documents
  • Payment plan details
  • Proof of payment (if paid)
• Underwriter evaluates impact

Can Be Overridden?: Yes (if being paid or satisfied)

Example:

• Judgment from 2 years ago: $8,000
• Borrower on monthly payment plan: $200/month
• 10 months remaining
• Underwriter may approve if payments current

Rule: CRD-048 - Recent Bankruptcy ⭐ MAJOR KNOCKOUT

Rule Code: CRD-048 Decision Type: Knockout or Adverse Action When It Runs: Pre-Qualification Step 9 (Credit Check) and Step 9.5 (Co-Borrower)

What It Checks: Detects bankruptcy filings within the last 4 years (48 months).

Why It Matters: Bankruptcy indicates:

• Severe financial distress
• Inability to manage debt
• Legal discharge of obligations
• Significant credit event

Borrowers need time to rebuild credit after bankruptcy.

How It Works:

• Scans credit report public records section
• Looks for bankruptcy filings
• Checks bankruptcy status:
  • Discharged (debt eliminated)
  • Dismissed (case thrown out)
• Calculates months since discharge/dismissal date
• If <48 months → Knockout or Adverse Action

Bankruptcy Types Checked:

• Chapter 7: Liquidation bankruptcy
• Chapter 13: Repayment plan bankruptcy
• Chapter 11: Business reorganization

Waiting Periods (Industry Standard):

• Chapter 7 discharge: 4 years minimum
• Chapter 13 discharge: 2-4 years
• Dismissed bankruptcy: 1-2 years

Example - Knockout:

• Chapter 7 bankruptcy discharged: March 2023
• Current date: January 2026
• Time since: 34 months (2.8 years)
• Required: 48 months (4 years)
• Result: KNOCKOUT (14 months short)

Example - Pass:

• Chapter 7 bankruptcy discharged: June 2021
• Current date: January 2026
• Time since: 55 months (4.6 years)
• Result: PASS

Borrower Message: "A bankruptcy discharge within the last 4 years makes you ineligible. You may reapply after [date]."

Can Be Overridden?: Rarely (firm industry guideline)

Credit Rebuilding After Bankruptcy:

• Wait full 4 years
• Build new credit (secured cards, small loans)
• Make all payments on time
• Show financial stability

Rule: CRD-051 - Foreclosure or Severe Delinquency ⭐ CRITICAL KNOCKOUT

Rule Code: CRD-051 Decision Type: Knockout or Adverse Action When It Runs: Pre-Qualification Step 9 (Credit Check) and Step 9.5 (Co-Borrower)

What It Checks: Detects foreclosures and severely delinquent mortgage payments (120+ days late).

Why It Matters: Foreclosure means borrower lost their home due to non-payment. This is the most serious mortgage default event. 120+ day late payments indicate imminent foreclosure.

How It Works:

• Scans credit report tradelines for rating types:
  • "Foreclosure"
  • "Foreclosure or Repossession"
  • "Late Over 120 Days"
• Any active or recent foreclosure → Instant knockout
• Current 120+ day late → Instant knockout

Foreclosure Process:

1. Missed payments (30, 60, 90 days late)
2. Severe delinquency (120+ days)
3. Foreclosure filing
4. Property seized
5. Foreclosure appears on credit

Waiting Periods After Foreclosure:

• Conventional loans: 7 years
• FHA loans: 3 years
• VA loans: 2 years
• Platform typical: 4-7 years

Example - Knockout:

• Credit report shows: "Foreclosure - Completed 2023"
• Result: KNOCKOUT

Example - Knockout (Current Late):

• Mortgage currently 150 days late
• Result: KNOCKOUT (foreclosure likely imminent)

Borrower Message: "A foreclosure or severely late mortgage payment makes you ineligible at this time."

Can Be Overridden?: No (firm guideline)

What If It's an Error:

• Borrower must dispute with credit bureaus
• Obtain corrected credit report
• Reapply with clean report

Category 3: Property/Tradeline Rules (10 Rules)

Rule: TRA-001 - Occupancy Type Validation

Rule Code: TRA-001 Decision Type: Knockout When It Runs: Pre-Qualification Step 5 (Address)

What It Checks: Validates that the property usage type (occupancy) is an eligible type for the loan program.

Why It Matters: Different property usage types have different risk profiles:

• Primary Residence: Lowest risk (borrower lives there)
• Second Home: Medium risk (occasional use)
• Investment Property: Higher risk (rented to others)

Programs may restrict which types are allowed.

Occupancy Types:

• Primary Residence: Borrower's main home, occupied majority of year
• Second Home: Vacation/seasonal property, not rented
• Investment Property: Purchased to generate rental income

How It Works:

• Borrower selects property usage during address step
• System checks if that usage type is in the program's accepted list
• If not accepted → Knockout

Example - Pass:

• Program allows: Primary Residence, Second Home
• Borrower selects: Primary Residence
• Result: PASS

Example - Fail:

• Program allows: Primary Residence only
• Borrower selects: Investment Property
• Result: KNOCKOUT

Borrower Message: "This loan program is only available for [accepted types]. Investment properties are not eligible."

Can Be Overridden?: No (program limitation)

Rule: TRA-003 - Intent to Occupy

Rule Code: TRA-003 Decision Type: Manual Review (Pending) When It Runs: Application Flow

What It Checks: For primary residences, verifies borrower intends to occupy the property within a specified timeframe (typically 60 days).

Why It Matters: Primary residence loans have better rates because:

• Borrowers protect their home investment better
• Lower default risk when occupying

If borrower doesn't intend to occupy, it's actually an investment property and should have different terms.

How It Works:

• Borrower declares property usage as "Primary Residence"
• System asks: "Do you intend to occupy within 60 days?"
• If "No" → Manual review (may be investment property)

Example:

• Property usage: Primary Residence
• Intent to occupy: No (moving in 6 months)
• Result: Manual review - May need to change to Second Home or Investment

What Happens:

• Task created for underwriter
• Underwriter verifies occupancy intent
• May reclassify property usage
• May adjust loan terms

Can Be Overridden?: Yes (if valid reason for delay, like construction)

Rule: TRA-005 - Number of Units (AVM Data)

Rule Code: TRA-005 Decision Type: Knockout or Adverse Action When It Runs: Pre-Qualification Step 10 (Mortgages) Applies To: Second homes ONLY

What It Checks: For second homes, validates that the property's unit count (from automated valuation data) meets program requirements.

Why It Matters: Second home programs typically require:

• Single-unit properties only
• Not multi-unit buildings
• Ensures property is truly for personal use, not rental income

How It Works:

• Automated property valuation (AVM) includes unit count
• If property usage is "Second Home"
• System checks AVM unit count
• Typically must be 1 unit for second homes
• If >1 unit → Knockout

Example - Pass (Second Home):

• Property usage: Second Home
• AVM shows: 1 unit (single family home)
• Result: PASS

Example - Fail (Second Home):

• Property usage: Second Home
• AVM shows: 2 units (duplex)
• Result: KNOCKOUT

Why This Matters: Multi-unit properties are for rental income, not personal vacation use. If borrower has a multi-unit property, it should be classified as Investment Property, not Second Home.

Borrower Message: "Second homes must be single-unit properties. Multi-unit properties should be classified as Investment Property."

Can Be Overridden?: Rarely (program requirement)

Rule: TRA-006 - Number of Units (Stated)

Rule Code: TRA-006 Decision Type: Knockout When It Runs: Pre-Qualification Applies To: Second homes ONLY

What It Checks: Similar to TRA-005, but uses borrower's stated unit count instead of AVM data.

Why It Matters: Validates borrower's statement about unit count matches second home requirements.

How It Works:

• Borrower states number of units during pre-qualification
• If property usage is "Second Home"
• System checks stated units
• Must be 1 unit for second homes

Difference from TRA-005:

• TRA-005: Uses AVM data (automated valuation)
• TRA-006: Uses borrower's declaration

Both rules work together to ensure second homes are single-unit.

Rule: TRA-007 - Property Type for Second Homes

Rule Code: TRA-007 Decision Type: Knockout or Adverse Action When It Runs: Pre-Qualification Step 10 (Mortgages) Applies To: Second homes ONLY

What It Checks: For second homes, validates that the property type (from AVM) is an eligible type.

Why It Matters: Second homes have restrictions on property types to ensure they're suitable for personal vacation use, not investment.

Eligible Second Home Property Types:

• Single Family Residence
• Condominium
• Townhouse

Typically NOT Eligible for Second Homes:

• Multi-unit buildings
• Manufactured homes
• Mixed-use properties

How It Works:

• AVM provides property type classification
• System converts AVM type to internal format
• Checks if type is in accepted list for second homes
• If not eligible → Knockout

AVM Type Mapping:

• "Single Family Residence" → singleFamily ✓
• "Condominium" → condo ✓
• "Townhouse" → townhouse ✓
• "Multi Family" → multiUnit ✗
• "Manufactured/Mobile Home" → manufactured ✗

Example - Pass:

• Property usage: Second Home
• AVM type: Single Family Residence
• Result: PASS

Example - Fail:

• Property usage: Second Home
• AVM type: Multi Family (duplex)
• Result: KNOCKOUT

Borrower Message: "Second homes must be single-family residences, condos, or townhouses. Multi-unit properties are not eligible."

Can Be Overridden?: No (program requirement)

Rule: Building Types

Rule Code: BuildingTypesRule Decision Type: Knockout When It Runs: Pre-Qualification Step 4 (Contact Info) and Step 1 (Building Type)

What It Checks: Validates that the borrower's selected building type is eligible for the loan program.

Why It Matters: Not all property types qualify for all loan programs. Some building types have higher risk or complexity.

Eligible Building Types (typically):

• Single Family
• Multi-Unit (2-4 units)
• Condominium
• Townhouse
• Manufactured Home

How It Works:

• Borrower selects building type at beginning of pre-qualification
• System checks against program's accepted types list
• If not accepted → Knockout

Example - Pass:

• Program accepts: Single Family, Condo, Townhouse
• Borrower selects: Single Family
• Result: PASS

Example - Fail:

• Program accepts: Single Family only
• Borrower selects: Manufactured Home
• Result: KNOCKOUT

Borrower Message: "This loan program does not accept [building type] properties."

Can Be Overridden?: No (program limitation)

Rule: Number of Units

Rule Code: NumberOfUnitsRule Decision Type: Knockout When It Runs: Pre-Qualification Step 1.5 (Units) - Only if Multi-Unit selected

What It Checks: For multi-unit properties, validates that the number of units is within acceptable range.

Why It Matters: The platform is designed for residential loans with 1-4 units. Properties with 5+ units are considered commercial and require different loan products.

Accepted Unit Counts for Multi-Unit:

• 2 units (Duplex)
• 3 units (Triplex)
• 4 units (Quadplex)

NOT Accepted:

• 5+ units (Commercial property)

How It Works:

• If borrower selects "Multi-Unit" building type
• System asks: "How many units?"
• Borrower must select 2, 3, or 4
• If they somehow indicate 5+ → Knockout

Example - Pass:

• Building type: Multi-Unit
• Units: 3 (Triplex)
• Result: PASS

Example - Fail (Currently Prevented by UI):

• Building type: Multi-Unit
• Units: 5+
• Result: KNOCKOUT

Borrower Message: "Properties with 5 or more units are considered commercial and are not eligible for this residential loan program."

Can Be Overridden?: No (program limitation)

Note: The pre-qualification interface only allows selection of 2, 3, or 4 units, so this rule serves as a backend validation safeguard.

Rule: TRA-008

Rule Code: TRA-008 Status: Planned/Future Implementation

Additional property validation rule currently being developed.

Category 4: Program Rules (2 Rules)

Rule: PRO-001 - Minimum Loan Amount

Rule Code: PRO-001 Decision Type: Knockout When It Runs: Pre-Qualification Step 12 (Offer Preview)

What It Checks: Validates that the requested loan amount meets the program's minimum requirement.

Why It Matters: Small loans aren't economically viable because:

• Fixed costs (appraisal, title, closing) are same regardless of loan size
• Processing costs don't scale down
• Origination fees wouldn't cover expenses

How It Works:

• Borrower enters desired loan amount during pre-qualification
• System compares to minimum threshold (configurable)
• If below minimum → Knockout

Typical Minimum Loan Amounts:

• Standard programs: $50,000
• Jumbo programs: $100,000+
• Varies by lender and market

Example - Pass:

• Minimum loan: $50,000
• Borrower requests: $75,000
• Result: PASS

Example - Fail:

• Minimum loan: $50,000
• Borrower requests: $35,000
• Result: KNOCKOUT

Borrower Message: "The minimum loan amount for this program is $[threshold]. Your requested amount of $[requested] does not meet this requirement."

Can Be Overridden?: Rarely (economic constraint)

Solution for Borrowers:

• Increase loan amount to minimum
• Look for different loan product
• Consider other lenders with lower minimums

Rule: PRO-002

Rule Code: PRO-002 Status: Planned/Future Implementation

Additional program eligibility rule currently being developed.

Category 5: Ratio Rules (1 Rule)

Rule: RAT-001 - Loan Amount Equals Draw Amount

Rule Code: RAT-001 Decision Type: Knockout When It Runs: Pre-Qualification Step 12 (Offer Preview)

What It Checks: Validates that the borrower is drawing the full loan amount (no reserves held back).

Why It Matters: The platform requires "full draw" loans where:

• Borrower must take all loan funds at closing
• Cannot leave funds in reserve
• Ensures borrower needs and will use the full amount

How It Works:

• Compares two values:
  • Loan Amount: Total loan being originated
  • Draw Amount: Amount borrower is actually taking
• These must be equal
• If borrower wants less than full amount → Knockout

Example - Pass:

• Loan amount: $100,000
• Draw amount: $100,000
• Result: PASS (full draw)

Example - Fail:

• Loan amount: $100,000
• Draw amount: $75,000 (keeping $25K in reserve)
• Result: KNOCKOUT

Borrower Message: "This program requires you to draw the full loan amount. Partial draws are not permitted."

Can Be Overridden?: No (program design limitation)

Why This Rule Exists:

• Simplifies loan servicing
• Prevents borrowers from borrowing more than needed
• Reduces administrative complexity
• Standard for home equity products

Solution for Borrowers: If they don't need the full amount, they should request a smaller loan.

Summary of All Rules by Type

Knockout Rules (Immediate Stop)

• BorrowerAge
• StatedInformation
• CreditScore (Stated)
• MaxCltv
• CRD-039 (Credit Counseling) ⭐
• CRD-040 (CCCS Credit Card)
• CRD-025 (Credit Score) ⭐⭐⭐ Most Common
• CRD-027 (Representative Score)
• TRA-001 (Occupancy Type)
• TRA-006 (Units - Stated for Second Homes)
• BuildingTypesRule
• NumberOfUnitsRule
• PRO-001 (Minimum Loan Amount)
• RAT-001 (Full Draw Requirement)

Adverse Action Rules (60-Second Notice)

• CRD-025 (Credit Score) - Can be configured
• CRD-029 (Late Mortgage - Soft)
• CRD-030 (Late Mortgage - Hard)
• CRD-048 (Bankruptcy) ⭐
• CRD-051 (Foreclosure) ⭐
• TRA-005 (Units - AVM for Second Homes)
• TRA-007 (Property Type for Second Homes)

Manual Review Rules (Soft - Continue with Task)

• CRD-005 (Manual Mortgage)
• CRD-011 (AVM Freshness)
• CRD-018 (Credit Alerts)
• CRD-019 (Credit Response)
• CRD-023 (Credit Inquiries)
• CRD-037 (Late Payment Dates)
• CRD-038 (All Debt Late Payments)
• CRD-042 (Collections Non-Medical) ⭐
• CRD-043 (Medical Collections)
• CRD-045 (Outstanding Judgments)
• TRA-003 (Intent to Occupy)

Most Common Denial Reasons (In Order)

1. CRD-025 - Credit Score Too Low (40-50% of denials)
2. CRD-048 - Recent Bankruptcy (15-20% of denials)
3. CRD-051 - Foreclosure/Severe Late (10-15% of denials)
4. CRD-039 - Credit Counseling (5-10% of denials)
5. Building Type Not Eligible (5% of denials)
6. PRO-001 - Loan Amount Too Small (3-5% of denials)
7. All Others (<3% each)

Questions?

For questions about specific rules, contact your underwriting team or system administrator.

For rule configuration changes, admins should access the AUS Rules Management portal.

Key Rules:

• BuildingTypes: Only certain property types qualify (no 5+ unit buildings)
• NumberOfUnits: Multi-unit properties limited to 2, 3, or 4 units
• TRA-001 (Occupancy): Validates primary residence, second home, or investment usage
• TRA-007 (Property Type): Second homes must be eligible property types

4. Program Rules (2 rules)

What They Check:

• Minimum loan amount requirements
• Loan draw requirements (must draw full amount)

Example: If minimum loan is $50,000 and borrower requests $45,000, they're disqualified.

5. Ratio Rules (1 rule)

What They Check:

• Loan amount must equal draw amount (can't hold back reserves)

How Rules Work (Simple Explanation)

Each rule compares what the borrower has against what's required:

Example 1: Credit Score

• Required: Credit score must be 640 or higher
• Borrower Has: 620
• Result: KNOCKOUT - Score is too low

Example 2: Age

• Required: Must be 18 or older
• Borrower Has: 25
• Result: APPROVED - Meets requirement

Example 3: Collections

• Required: Non-medical collections under $2,000 total
• Borrower Has: $1,500 in collections
• Result: MANUAL REVIEW - Close to limit, needs underwriter review

Configurable Rules

Lender Admins and Underwriters can configure most rules through the portal:

What Can Be Changed:

• Minimum credit score thresholds
• Days since late payments
• Which property types are allowed
• Minimum loan amounts

What Cannot Be Changed:

• The type of rule (knockout vs. manual review vs. adverse action)
• When rules run in the application flow
• Core validation logic

Why Configurable?: Different loan programs have different requirements. A prime program might require 720 credit score, while a subprime program accepts 640.

Manual Overrides

Sometimes rules deny applications that deserve a closer look. Underwriters can override rules:

Override Options

Example: Rule denies because of a $3,000 medical collection. Borrower provides proof it's paid off. Underwriter overrides the rule and accepts the application.

Audit Trail: Every override is logged with:

• Who made the decision
• When it happened
• Why they overrode the rule
• Previous and new status

Common Knockout Reasons

Based on frequency, here are the most common reasons applications are denied:

1. Credit Score Too Low (CRD-025)

   • Most common knockout
   • Typically need 640-680 minimum

2. Recent Bankruptcy (CRD-048)

   • Must be 4+ years since discharge
   • Includes Chapter 7 and Chapter 13

3. Recent Foreclosure (CRD-051)

   • Active foreclosure proceedings
   • Or 120+ day late payment

4. Credit Counseling Enrollment (CRD-039)

   • Enrolled in CCCS or debt management
   • Instant disqualification

5. Ineligible Property Type

   • 5+ unit buildings
   • Commercial properties
   • Unlicensed states

6. Property Listed for Sale (Step 6)

   • Listed in last 6 months
   • Indicates short-term intent

For Each Borrower Type

Individual Borrowers

• All rules run once
• Single credit report evaluated
• Age, credit, and property rules apply

Joint Applications (Co-Borrowers) (Disabled)

• Rules run for BOTH borrowers
• Credit scores: uses the LOWER of the two
• Age: both must meet minimum
• Collections/bankruptcies: checked for both
• If either borrower fails knockout, entire application denied

Example: Primary borrower has 720 credit score. Co-borrower has 610. The application uses 610 (the lower score) and may be denied if minimum is 640.

Special Cases

Self-Employed Borrowers

• Same rules apply
• Income verification uses tax returns instead of paystubs
• May have additional documentation requirements (manual review)

Second Homes

• Stricter property type requirements
• Must be single-unit
• Cannot be rented out
• Additional property validation rules

Investment Properties

• Different occupancy rules
• Rental income considered
• May have higher credit score requirements

How to View Rule Results

For Portal Users (Loan Officers, Underwriters)

1. Borrower Details Page → AUS Execution Tab

   • See all rules that ran
   • Green = Passed
   • Yellow = Manual Review
   • Red = Failed
   • View specific failure reasons

2. Manual Override Buttons

   • Accept, Deny, or Grant Exception
   • Add notes explaining decision

3. Re-Execute Rules

   • If borrower information changes, re-run specific rules
   • Useful after borrower pays off collection or explains late payment

For Support Staff

When a borrower calls asking why they were denied:

1. Look up their application
2. Go to AUS Execution tab
3. Find the rule(s) marked "not_passed" (red)
4. Read the failure reason
5. Explain to borrower in simple terms

Example:

• Rule: CRD-025 (Credit Score)
• Status: Not Passed
• Reason: "Credit score of 615 does not meet minimum requirement of 640"
• Tell Borrower: "Your credit score is currently 615, and our program requires a minimum of 640. You may want to work on improving your credit and reapply in the future."

Rule Execution Status Meanings

When you view a rule result, it will have one of these statuses:

Rules by Pre-Qualification Step

Quick reference for which rules run at each step:

Step 4: Contact Info

• Building type eligibility
• Unit count (if multi-unit selected)

Step 8: Has FBM

• Stated information (bankruptcy, foreclosure, modifications)

Step 9: Credit Check

• Knockouts: Age, Credit counseling
• Adverse Actions: Credit score, Late payments, Bankruptcy, Foreclosure
• Manual Reviews: Credit alerts, Collections, Late payment dates

Step 9.5: Co-Borrower

• Same as Step 9, applied to co-borrower

Step 10: Mortgages

• Knockouts: Manual mortgage detection, AVM freshness
• Adverse Actions: Unit count from AVM, Property type validation

Step 12: Offer Preview

• Final comprehensive validation before showing offers

Best Practices for Portal Users

When Creating Manual Applications

1. Check property eligibility first: Save time by confirming building type and state before entering full borrower info
2. Pre-screen credit score: Ask borrowers their approximate credit score
3. Ask about recent credit events: Bankruptcy, foreclosure, credit counseling

When Reviewing Denied Applications

1. Read ALL failed rules: Sometimes multiple issues exist
2. Check if override is appropriate: Some denials can be overridden with documentation
3. Explain clearly to borrower: Use the default reason text as a guide
4. Document overrides thoroughly: Include justification for audit purposes

When Configuring Rules (Admins Only)

1. Test changes on test applications first: Don't change production rules without testing
2. Document why you changed thresholds: Keep notes for compliance
3. Coordinate with underwriting team: Ensure changes align with lending guidelines
4. Review rule performance quarterly: Check if rules are too strict or too lenient

Troubleshooting Common Issues

"Why did my application get denied?"

Check:

1. View AUS Execution tab in borrower details
2. Look for red "Not Passed" statuses
3. Read the failure reason
4. Explain to borrower in plain language

"The rule seems wrong"

Check:

1. Is the rule active? (Should be turned on)
2. Are the thresholds configured correctly? (Check rule configuration)
3. Is borrower data accurate? (Sometimes data entry errors cause false failures)
4. Does the borrower actually qualify? (Rule may be working correctly)

"Can we override this denial?"

Depends:

• Knockout rules: Can be overridden by underwriters with justification
• Adverse actions: Can be overridden but require strong compensating factors
• Regulatory knockouts: Some cannot be overridden (e.g., age requirement)

"Application keeps getting denied for the same reason after we fixed it"

Solution:

1. Verify the data actually changed in the system
2. Use "Re-Execute Rule" button to run the rule again
3. Check if related rules also need to pass
4. Contact technical support if rule won't re-run

Frequently Asked Questions

Q: Can borrowers see AUS rule results? A: No. Borrowers only see simple approval/denial messages. Detailed rule results are portal-only.

Q: How often do rules change? A: Rule thresholds may change quarterly based on risk analysis and market conditions. Core rules remain stable.

Q: What if a rule has a technical error? A: Status shows "Failed" in red. Contact technical support immediately. Borrower application is paused.

Q: Can we create new custom rules? A: Yes, but it requires engineering work. Submit a request through the product team.

Q: Do rules run in a specific order? A: No, rules run in parallel (at the same time). However, knockout rules are checked before adverse action rules.

Q: What happens if the credit bureau is down? A: Rules requiring credit data will fail. Borrower sees an error and should try again later.

Q: Can we disable a rule temporarily? A: Yes. Admins can set a rule to "inactive" which skips it for all applications. Be cautious - this affects all borrowers.

Q: How do we know if a rule is working correctly? A: Review the AUS Execution History tab to see all past executions, pass rates, and failure reasons.

Summary

The Automated Underwriting System:

✅ Evaluates 40+ eligibility rules automatically ✅ Makes instant approve/deny decisions ✅ Ensures consistent application of lending guidelines ✅ Provides three decision types: Knockout, Adverse Action, Manual Review ✅ Can be configured by admins for different loan programs ✅ Supports manual overrides by underwriters ✅ Creates audit trails for compliance ✅ Runs at specific checkpoints during application flow

Key Benefit: Faster decisions with consistent risk management, allowing underwriters to focus on complex cases that truly need human judgment.

Questions?

For questions about specific rules or configurations, contact your underwriting team or system administrator.

For technical issues with rule execution, create a support ticket.