Fannie Mae’s automated system that is underwriting Desktop Underwriter (DU), evaluates home loan delinquency danger and gets to 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 info into the loan casefile to achieve a credit that is overall assessment to find out eligibility for distribution to Fannie Mae.
Nobody factor determines a borrower’s willingness or ability to help make his / her home loan repayments. DU identifies low-risk facets that will offset factors that are high-risk. Whenever several high-risk facets are contained in a loan casefile without adequate offsets, the probability of severe delinquency increases.
DU conducts its analysis uniformly, and without respect to race, gender, or other factors that are prohibited. (more…)