What is aus in mortgage?

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When it comes to mortgages, there are various terms and abbreviations that borrowers may come across. One such term is “AUS,” which stands for Automated Underwriting System. In this article, we will delve into what AUS in mortgage means, how it works, and its significance in the loan approval process.

Understanding AUS in Mortgage

Definition: An Automated Underwriting System (AUS) is a computerized program used by lenders to evaluate loan applications and determine the borrower’s creditworthiness. It streamlines the underwriting process by automating the analysis of borrower information and providing a quick decision on loan approval.

How AUS Works: AUS uses algorithms and predefined rules to assess various factors, including credit history, income, employment, debt-to-income ratio, and other relevant information provided by the borrower. The system analyzes this data and generates a risk assessment, indicating the likelihood of the borrower repaying the loan.

Benefits of AUS: The use of AUS offers several advantages for both lenders and borrowers. For lenders, it increases efficiency by automating the underwriting process, reducing the need for manual review and minimizing human error. It also provides a standardized evaluation, ensuring consistency in loan decision-making. Borrowers benefit from faster loan approval times, as AUS can provide an instant decision in many cases, eliminating the need for lengthy manual reviews.

Types of AUS

There are several AUS platforms available in the mortgage industry. Some of the most commonly used systems include:

Fannie Mae’s Desktop Underwriter (DU): DU is an AUS developed by Fannie Mae, a government-sponsored enterprise. It is widely used by lenders to evaluate conventional mortgage loan applications.

Freddie Mac’s Loan Prospector (LP): Loan Prospector, developed by Freddie Mac, is another popular AUS used by lenders to assess conventional mortgage loan applications.

FHA’s TOTAL Scorecard: The Federal Housing Administration (FHA) utilizes the TOTAL Scorecard as its AUS for evaluating loan applications for FHA-insured mortgages.

Importance of AUS in Mortgage Approval

AUS plays a crucial role in the mortgage approval process. It helps lenders make informed decisions by objectively assessing borrower information and determining the level of risk associated with granting a loan. By automating the underwriting process, AUS reduces the time and effort required for manual reviews, allowing lenders to process loan applications more efficiently.

AUS also helps ensure compliance with lending guidelines and regulations. The system applies predefined rules and guidelines set by the lender or the loan program, ensuring consistency and adherence to lending standards.


Automated Underwriting Systems (AUS) have revolutionized the mortgage industry by streamlining the loan approval process. These computerized programs analyze borrower information, assess creditworthiness, and provide lenders with quick and accurate loan decisions. By automating the underwriting process, AUS improves efficiency, reduces manual errors, and ensures consistency in loan decision-making.


– Fannie Mae: https://www.fanniemae.com/
– Freddie Mac: https://www.freddiemac.com/
– Federal Housing Administration: https://www.fha.com/