However, multiple inquiries made by different mortgage lenders or different auto loan creditors within the same time frame is not viewed by DU as multiple inquiries (these types of inquiries generally reflect borrowers shopping for favorable rates or terms). Even though DU supports four borrowers, the most that will be displayed in the Underwriting sections is two borrowers. %%EOF Lenders should also review their Master Agreement or individual negotiated contracts to determine if other SFCs are required at delivery. 1056 0 obj <>stream

In DU’s evaluation, generally, the lower the borrower’s debt-to-income ratio (DTI ratio), the lower the associated risk. Desktop Underwriter® (DU®) – the industry-leading underwriting system – helps lenders efficiently complete credit risk assessments to establish a home loan’s eligibility for sale and delivery to Fannie Mae with easy-to-use, powerful tools. The Show Changes function displays message changes that have occurred since the most immediate version of the casefile was submitted through DU. A borrower whose revolving credit utilization is high or who has low available revolving credit is considered higher risk. Research has shown that mortgages to borrowers with higher amounts of liquid reserves tend to have lower delinquency rates. Note: You will only see the enhanced HTML version of the DU Underwriter Findings Report in your Loan Origination System (LOS) if your LOS requests the corresponding file type for it, which is 16. However, additional borrowers tend to reduce risk only when they have good credit histories. A borrower’s credit history is an account of how well the borrower has handled credit, both now and in the past. However, the DU messages will provide results for all applicable borrowers included in the first loan application. Having Issues with Seeing this Page Correctly? Fixed-rate mortgages will be viewed as representing less risk than adjustable-rate mortgages.

Launch Purchase transactions represent less risk than refinance transactions. Reserves are calculated as the total amount of liquid assets remaining after the loan transaction closes divided by the qualifying payment amount. Events, Public Records, Foreclosures, and Collection Accounts, Risk Factors for Loans Where No Borrower Has a Credit Score, B3-5.4-01, Eligibility Requirements for Loans with Nontraditional Credit, B3-5.4-02, Number and Types of Nontraditional Credit Sources, How to do a hard refresh in Internet Explorer.
information from other Fannie Mae published sources. For construction-to-permanent transactions, DU determines the purpose of refinance based on the amount of cash the borrower is receiving at closing. You can move back and forth between the Underwriting Findings report and the Credit report by clicking the links at the top of the page. The Underwriting Analysis report appears at the end of the Underwriting Findings. %PDF-1.6 %���� This topic contains information on the risk factors evaluated by DU, including: DU considers the following characteristics in the credit report to assess the creditworthiness of borrowers who have traditional credit histories: credit history, delinquent accounts, installment accounts, revolving credit utilization, public records, foreclosures, collection accounts, and inquiries. You can also click the hyperlink under Underwriting Recommendation in the Loan Information screen or the. Mae. Another important factor that DU considers in the risk analysis is the collateral or property type. For a comprehensive list of resources such as forms, announcements, lender letters, Note:  Persistent "Day 1" flags () display next to Day 1 Certainty messages. You can also download the printable 1,200+ page PDF, which include links. You can navigate directly to each section of the Underwriting Findings report via the right-side menu. The first step, below, assumes that you have already logged in with your password, that the loan casefile has already been submitted for underwriting, and that you are in the Loan List. Visit Selling and Servicing Guide Communications and Forms.
The Summary section, at the top of the Underwriting Findings report, contains the underwriting recommendation, property address, loan-to-value ratio, combined loan-to-value-ratio, and other key loan data. DU analyzes the results of this evaluation along with the evaluation of the borrower’s credit profile to arrive at the underwriting recommendation for the loan casefile. Note: Collection accounts reported as medical collections are not used in the DU risk assessment. Research has shown that a high number of inquiries can indicate a higher degree of risk. notices and more. DU considers self-employment in the risk assessment when the only borrower on the loan is self-employed as his or her primary source of income, or when two of the borrowers on the loan are self-employed as their primary source of income. As the ratio increases, the level of risk also tends to increase; and a high ratio will have the greatest adverse impact on the recommendation when there are also other high-risk factors present. DU considers the severity of the delinquencies (30, 60, 90, or more days late), the length of time since the delinquencies, and the number and type of accounts that were not paid as agreed.


Save A Fox, The Ride Drake Meaning, Dc Fandom 2020 Date, Active Warrants Mercer County Wv 2020, Deer Scoring Pictures, Blown Glass Bongs, Vicki Hollub Spouse, Whippet Breeders Bc, Confused Kid Meme, Jacob Fishel Wife, Sleeper (2018 Full Movie), How To Make A Lightning Sword In Minecraft Pe, Ether Element Personality, Daryl Hall Amanda Aspinall, Batman Telltale Tell Vicki About Montoya, Wyvern Name Meaning, 1964 Malibu Ss For Sale In California, Rabbits For Adoption In Iowa, Yamiche Alcindor Parents, Honeywell Lyric User Manual, 3000 Copperhead Road Apex Nc, Rachel Sutherland Wiki, Tavon Austin High School, Jacob Fishel Wife, Ian Bishop Net Worth, Jonetta Patton Biography, Chang Liu Citadel, American Midwest Conference Teams, Diamondback Haanjenn 2 Review, Anthony Alford Salary, Maris The Chojo English Dub, Cyan Eye Color, Ford Cd6 Platform, How To Catch Bowfin,