May 20, 2016
CA 2016-03: Fannie Mae Desktop Originator/Desktop Underwriter Release Notes—DU Version 10.0
On February 23, 2016, Fannie Mae published Desktop Originator/Desktop Underwriter Release Notes—DU Version 10.0, which describes changes to specific underwriting requirements effective June 25, 2016.
The following are United Guaranty's positions on these changes:
Underwriting Borrowers without Traditional Credit:
DU version 10.0 includes the ability to underwrite loan casefiles in which no borrowers have a credit score.
It also expands the requirements for loans in which at least one borrower has a credit score and other borrowers do not have a credit score. United Guaranty will continue to require that every borrower on the loan have a credit score. There will be no change to our underwriting requirements.
Multiple Financed Properties:
With DU version 10.0, the reserve requirements for borrowers with multiple financed properties are changing. United Guaranty will align with the DU reserve requirements when the loan receives an Approve/Eligible recommendation. No changes to our Underwriting Guide are required.
Credit Reports with Trended Credit Data:
DU version 10.0 requires that credit reports contain trended credit data. United Guaranty will accept credit reports with trended credit data. No additional analysis of the credit report is required due to the addition of the trended credit data. No changes to our Underwriting Guide are required.
Please contact your United Guaranty Account Representative if you have questions about this announcement.
© United Guaranty Corporation 2016. All rights reserved. United Guaranty is a marketing term for United Guaranty Residential Insurance Company and United Guaranty Mortgage Indemnity Company and is a registered mark. Coverage is available through admitted company only. Desktop Originator, Desktop Underwriter, and DU are marks of Fannie Mae.