The Department of Housing and Urban Development has named the first group of lenders that will use automated underwriting to expedite FHA loan originations.

The 10 lenders, large and small mortgage banks from across the country, will be able to accomplish in minutes tasks that now can take days, an FHA spokesman said.

Under the test program, lenders will use the Federal Home Loan Mortgage Corp.'s Loan Prospector system, which makes risk evaluations.

The FHA plans to evaluate the system during the next six months, when as many as 6,000 loans are expected to be made.

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