Fannie Maeâ€™s automated underwriting system, Desktop Underwriter (DU), evaluates home loan delinquency danger and gets to an underwriting recommendation by counting on an extensive 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 when you look at the loan casefile to achieve a general credit danger evaluation to ascertain eligibility for delivery to Fannie Mae.
Nobody factor determines a borrowerâ€™s ability or willingness to create his / her mortgage repayments. DU identifies low-risk facets that will offset high-risk facets. Whenever a few factors that are high-risk contained in that loan casefile without enough offsets, the chances of severe delinquency increases.
DU conducts its analysis uniformly, and without reference to race, gender, or other factors that are prohibited. DU utilizes validated, statistically significant variables which have been been shown to be predictive of home loan delinquency across all teams.
DU doesn’t assess a loanâ€™s compliance with federal and state laws and regulations including, without limitation, a loanâ€™s status that is potential a qualified home loan under relevant legal guidelines. Loan providers bear single obligation for complying with relevant legal guidelines, and these conformity responsibilities is almost certainly not 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.
Once the home loan or debtor information modifications also it no further fits the info utilized if the loan casefile had been final underwritten with DU, the financial institution must upgrade 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. Continue reading “Loans could be submitted to DU before or following the closing of this home mortgage”