Final answer:
TOTAL, which stands for Technology Open To Approved Lenders, is an automated underwriting system used by lenders to assess mortgage loan applications. It uses an algorithm to evaluate potential borrowers' credit risk for FHA-insured mortgages, aiding in consistency and speed of loan approvals.
Step-by-step explanation:
The technology referred to as TOTAL is likely the Technology Open To Approved Lenders (TOTAL) Mortgage Scorecard used by lenders in the process of assessing mortgage loan applications. TOTAL stands for Technology Open To Approved Lenders, which is a mathematical algorithm developed by the Federal Housing Administration (FHA) that allows approved lenders to quickly and objectively evaluate potential borrowers' credit risk for FHA-insured mortgages. Through the use of this automated underwriting system, lenders can ensure consistency in their lending decisions and minimize the potential for bias.
TOTAL's automated system assesses the creditworthiness of applicants using criteria such as credit scores, debt ratios, and other financial data to determine eligibility for loans. This technology helps streamline the loan approval process by enabling faster and more accurate risk assessment, which is crucial in the decision-making process for mortgage approvals.