The three underwriting procedures for single family mortgages are:
(a) Direct Endorsement. This procedure, which is described in Sec. 203.5, is available for mortgagees that are eligible under Sec. 203.3.
(b) Lender insurance. This procedure, which is described in Sec. 203.6, is available for mortgagees that are eligible for the Direct Endorsement program under Sec. 203.5, and that are also approved according to Sec. 203.4.
(c) Issuing of commitments through HUD offices. Processing through HUD offices as described in Sec. 203.7, with issuance of commitments, is available only for mortgages that are not eligible for Direct Endorsement processing under Sec. 203.5(b) or to the extent required in Sec. 203.3(b)(4), Sec. 203.3(d)(1), or as determined by the Secretary. [62 FR 30225, June 2, 1997]