What is a Du validation service?

The Desktop Underwriter® (DU®) validation service can offer mortgage loan originators a streamlined process for analyzing key information from borrowers. It uses third-party vendor data to validate income, asset, and employment information entered by the loan originator in DU.

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Then, how can I get Du approval?

Loan Application

  1. Gather and complete 1003 mortgage application form.
  2. Obtain consent to order credit, income, employment, and asset verification reports and order the reports.
  3. Order automated VOE/VOI report.
  4. Explain the verification of assets (VOA) process to the borrower. …
  5. Confirm the borrower executed the VOA process.
In this regard, how do I get a Fannie Mae appraisal waiver? To exercise an appraisal waiver on a loan casefile that is eligible for an appraisal waiver, the lender must deliver the loan to Fannie Mae with SFC 801 along with the applicable casefile ID reported on the Loan Schedule or Schedule of Mortgages.

Also know, is Du Fannie Mae?

DU is the powerhouse that connects Fannie Mae technologies and gives users innovation at their fingertips.

Is Fannie Mae a LP?

Fannie Mae uses the automated underwriting system called Desktop Underwriter or DU, while Freddie Mac uses the AUS called Loan Prospector or LP.

Is FHA a DU or LPA?

FHA Loans also require “Automated Approvals”, borrowing Fannie Mae’s “DU” program but with specialized FHA parameters. … Almost ALL of our lenders will not accept a loan unless the loan submission is accompanied by an “Automated Approval”.

What does Du approve eligible mean?

Loans receiving a DU Approve/Eligible recommendation are eligible for delivery to Fannie Mae, assuming all required conditions are satisfied. … Loans that receive a DU Refer with Caution recommendation do not meet Fannie Mae’s credit risk standards and are not eligible for delivery as a DU loan1.

What FICO score is typically used to qualify a borrower?

The commonly used FICO® Scores for mortgage lending are: FICO® Score 2, or Experian/Fair Isaac Risk Model v2. FICO® Score 5, or Equifax Beacon 5. FICO® Score 4, or TransUnion FICO® Risk Score 04.

What is a Fannie Freddie loan?

Fannie Mae and Freddie Mac are federally backed home mortgage companies created by the United States Congress. Neither institution originates or services its own mortgages. Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.

What is Desktop Underwriter?

Desktop Underwriter (DU) is an automated underwriting system developed by Fannie Mae to help mortgage lenders make informed credit decisions on conventional and government loans. … It then covers how to interpret underwriting recommendations and review reports accurately.

What is DTI in mortgage?

Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.

What is DU and LP in mortgage?

DU stands for Desktop Underwriter and LP stands for Loan Prospector. … Loan originators use DU and LP to determine whether a loan meets Fannie Mae or Freddie Mac’s eligibility requirements which means DU or LP approval is a critical step towards closing on a mortgage.

What is Fannie Mae DVS?

Fannie Mae’s DU validation service is designed to give lenders enhanced loan origination controls, a more efficient mortgage origination process, and certainty around the borrower’s income, asset, and employment information.

What is Fannie Mae value verify?

In order to understand what has changed, we first have to understand Fannie’s Value Verify initiative. Under Fannie Mae’s initiative, a property data collector, not necessarily a licensed appraiser, would inspect a home and report back on the condition of the property (click Bifurcated Appraisals for more).

What is Freddie Mac LPA?

Loan Product Advisor is our enhanced automated underwriting system. It helps simplify your origination processes and provides you with greater certainty that your loans meet Freddie Mac eligibility requirements.

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