Likewise, people ask, can you run LP for FHA?
This mortgagee letter announces that FHA has approved Freddie Mac’s Loan Prospector (LP) for use on FHA insured mortgages effective March 2, 1998.
Thereof, is automated underwriting better than manual?
Lenders use automated underwriting because it’s much faster and more cost-efficient than manual underwriting.
Is automated underwriting good?
Automated underwriting is only as good as the information it’s given and the algorithm it’s programmed to use. A human underwriter is required to input the information, review the AUS’s findings for accuracy, and actually issue the loan.
Automated underwriting systems (AUS) analyze a client’s financial information (such as credit score and income) in addition to the overall value of the property they are looking to purchase (usually determined by an appraiser).
The primary difference between Freddie Mac and Fannie Mae is where they source their mortgages from. Fannie Mae buys mortgages from larger, commercial banks, while Freddie Mac buys them from much smaller banks. … Fannie Mae and Freddie Mac also have differences in lending requirements and programs.
Once you’ve reached the underwriting stage and you’re ready to close on the home, you’ll pay an origination fee as part of your closing costs needed to secure the mortgage. An origination fee is essentially your loan officer’s commission payment for getting you the home loan.
So remember, Desktop Underwriter (DU) is Fannie Mae’s automated underwriting system, and Loan Prospector is Freddie Mac’s.
92% Chance of Automation
“Mortgage Underwriter” will probably be replaced by robots. This job is ranked #563 out of #702. A higher ranking (i.e., a lower number) means the job is less likely to be replaced.