Fannie Mae’s automated system that is underwriting Desktop Underwriter (DU), evaluates mortgage 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 knowledge within the loan casefile to attain a credit that is overall evaluation to ascertain eligibility for delivery 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 may offset high-risk facets. Whenever a few factors that are high-risk contained in a loan casefile without enough offsets, the probability of severe delinquency increases.
DU conducts its analysis uniformly, and without respect to race, gender, or any other factors that are prohibited. DU utilizes validated, statistically significant factors which have been proved to be predictive of mortgage delinquency across all teams.
DU will not assess a loan’s compliance with federal and state regulations including, without limitation, a loan’s prospective status as a qualified home loan under relevant legal guidelines. Lenders 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 submission that is first DU for underwriting purposes must happen before closing of this home loan.