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. Continue reading “Loans can be submitted to DU before or following the closing associated with home loan”