The three underwriting procedures for single family mortgages are:

(a) Direct Endorsement. This procedure, which is described in §203.5, is available for mortgagees that are eligible under §203.3.

(b) Lender insurance. This procedure, which is described in §203.6, is available for mortgagees that are eligible for the Direct Endorsement program under §203.5, and that are also approved according to §203.4.

(c) Issuing of commitments through HUD offices. Processing through HUD offices as described in §203.7, with issuance of commitments, is available only for mortgages that are not eligible for Direct Endorsement processing under §203.5(b) or to the extent required in §203.3(b)(4), §203.3(d)(1), or as determined by the Secretary.

[62 FR 30225, June 2, 1997]