WASHINGTON—During the weekend of Dec. 8, Fannie Mae will begin use of Desktop Underwriter (DU) Version 10.3, which accounts for 2018 market conditions,
makes changes to appraisal waivers and provides updates to align with the Selling Guide. Many credit unions use the DU for loans sold to Fannie Mae.
The new version of the DU will continue to analyze each loan for mortgage delinquency variables, according to Fannie. For those loans with multiple high-risk factors, it will also address market expansion for better risk management. Fannie Mae said the new DU may yield a slight reduction in those loans receiving an approved or eligible recommendation – especially those with multiple high-risk factors.
“This version will also continue to look for a potential borrowers' credit score through traditional credit methods. DU 10.3 does not make any changes to loan evaluations in instances where the borrower has no credit score,” NAFCU said in its analysis of the new software.
The changes made to appraisal waiver-related messaging issued by the DU include those areas impacted by disasters, rural areas with high needs and properties valued at $1 million or more. Various message text changes to the Selling Guide are also updated in DU 10.3, NAFCU said.
Also of note, effective the weekend of Dec. 8, lenders will no longer be able to resubmit casefiles to DU Version 10.1 as it is being retired.