Loans might be submitted to DU before or following the closing of this home loan

Loans might be submitted to DU before or following the closing of this home loan

Fannie Mae’s automated underwriting system, Desktop Underwriter (DU), evaluates home loan delinquency risk 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 into the loan casefile to attain a credit that is overall evaluation to ascertain eligibility for distribution to Fannie Mae.

No body factor determines a borrower’s willingness or ability to create his / her mortgage repayments. DU identifies low-risk facets that will offset factors that are high-risk. Whenever a few high-risk facets are contained in a loan casefile without sufficient offsets, the possibilities of severe delinquency increases.

DU conducts its analysis uniformly, and without reference to race, gender, or any other prohibited facets. DU utilizes validated, statistically significant factors which were been shown to be predictive of home loan delinquency across all teams. amscot

DU will 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 conformity responsibilities might not be imposed upon or provided by Fannie Mae. Continue reading