5.15.2 CNA e-Tool and HUD Underwriting

A. The review functions of the CNA e-Tool are available only to authorized HUD staff. Use of the CNA e- Tool should be consistent with the single Underwriter approach and requires that completed work be presented to senior managers before a CNA is approved as part of an underwriting decision on an application for mortgage insurance. Each user will be assigned at least one of three possible roles:

1. Assigner. Assigners generally will include the Production Chief, and Branch Chiefs and may include Senior Underwriters. Assigners should have dual roles, i.e., Assigners typically will also have a reviewer role. Assigners receive compiled reports on all CNAs submitted to HUD including information on the program for which application is made or the purpose of the CNA, the name and location of the subject property and the status of the CNA (submitted, under review, ready for decision, returned and approved.). Assigners will also receive a compiled workload report indicating the number of CNAs assigned to each reviewer and certain information useful to assess relative workloads. Using these reports, Assigners will assign submitted CNAs to staff for review. Assigners also have the responsibility to open CNAs made “ready for decision” by their staff, and to modify or edit the reviewer’s comments. If an Assigner desires a Reviewer to modify comments or reconsider issues or seeks additional review from technical staff on a CNA made ready for decision, the Assigner can return the CNA to the reviewer with instructions, or identify a different Reviewer and reassign the CNA. If satisfied that the review is complete and the CNA acceptable the Assigner can approve the CNA, or if comments or identified issues require a Lender response, the Assigner or the Reviewer may “return” the CNA to the Lender. When the Lender addresses comments and resubmits the CNA, the process is repeated until the Assigner is satisfied that all CNA and other underwriting requirements have been addressed and a Firm Commitment can be issued, whereupon the Assigner “approves” the CNA. Attachments and reports from the approved CNA may be printed for use as attachments to the Firm Commitment as needed. The approved CNA, including all attachments, is recorded permanently in the CNA e-Tool database and can be retrieved for comparative purposes and/or for use in asset management functions. Approval of a CNA should be closely associated with the conclusion of underwriting and the issuance of a Firm Commitment. But circumstances may require a change, typically an amendment to the Firm Commitment. The Assigner may enable a change to an approved CNA by selecting “Undo Approval” which action restores the CNA to an “Under Review” status whereupon the reviewer or the assigner can return the CNA to the Lender so the Lender can make the necessary changes.

2. Reviewer. Reviewers receive assignments from Assigners. Generally, reviewers are Underwriters and HUD construction analysts. When opening the CNA e-Tool, reviewers see a list of all CNAs assigned to them and may open any one of these and complete or continue a review. Reviewers may search for other CNAs not assigned to them but may only read, not write, to such files. Reviewers analyze the assigned CNA, enter comments both general and specific and upon completion of review indicate that the CNA is “ready for decision.” A Reviewer may “reassign” to another reviewer a CNA assigned to him which enables staff to share work or solicit assistance. If a reviewer identifies issues or deficiencies in the CNA, the reviewer can enter comments and return the CNA to the Lender. When satisfied that the CNA addresses all relevant and material issues, the reviewer changes the CNA status to “ready for decision” whereupon the assigner is able to consider the reviewer’s work, modify the reviewer’s comments and either assign it back to the same or another reviewer for further work, return it to the Lender for the Lender to address comments, or approve the CNA.

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Chapter 5 Architectural and Construction Analysis 5.15 HUD Procedures

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3. Viewer. A viewer is any staff person who regularly needs to see CNAs but not act on them.

B. The CNA e-Tool supports work-sharing across all HUD offices geographically and among different program offices, e.g., Office of Multifamily Production, Office of Recapitalization, and Office of Asset Management and Portfolio Oversight. Any HUD staff provided access to and a role in the CNA e-Tool can use the Tool to read CNAs selected by search or to review CNAs assigned to them for review.