Fannie Mae’s automated system that is underwriting Desktop Underwriter (DU), evaluates home loan delinquency danger and finds an underwriting recommendation by counting on a thorough study of the main and contributory danger facets in a home loan application. (See B3-2-03, Risk Factors Evaluated by DU) It analyzes the information and knowledge into the loan casefile to attain a general credit danger evaluation to ascertain eligibility for distribution to Fannie Mae.
No body factor determines a borrower’s ability or willingness in order to make his / her mortgage repayments. DU identifies low-risk facets that will offset factors that are high-risk. Whenever a few factors that are high-risk contained in a loan casefile without enough offsets, the possibilities of severe delinquency increases.
DU conducts its analysis uniformly, and without respect to race, gender, or other factors that are prohibited. DU utilizes validated, statistically significant factors which have been proved to be predictive of home loan delinquency across all teams.
DU does not assess a loan’s conformity with federal and state regulations including, without limitation, a loan’s possible status as a qualified home loan under relevant regulations. Loan providers bear single duty for complying with relevant legal guidelines, and these compliance responsibilities may possibly not be imposed upon or provided by Fannie Mae.
Underwriting with DU
Nevertheless, the very first distribution to DU for underwriting purposes must happen before closing of this home mortgage.
If the home loan or debtor information modifications plus it no further fits the info utilized as soon as the loan casefile ended up being final underwritten with DU, the lending company must update the info and resubmit the mortgage casefile to DU. Exceptions are specified in B3-2-10, Accuracy of DU information, DU Tolerances, and Errors into the credit history. Læs videre Loans can be submitted to DU before or following the closing associated with the home mortgage