Currently, a Direct Endorsement underwriter must personally review the appraisal report and credit application, including the analysis performed on the worksheets. With the introduction of automated underwriting systems, the need for human underwriters to review certain aspects of the mortgage loan application is substantially diminished. This interim rule amends the regulations on Single Family Mortgage Insurance to allow the lender to substitute an ``accept'' risk classification from a FHA-approved automated underwriting system (AUS) in lieu of a personal review by a Direct Endorsement underwriter of the borrower's credit and capacity to repay the mortgage.