Fannie Mae has announced that it will implement Desktop Underwriter (DU) Version 9.0 during the weekend of Oct. 20. Loan case files created in DU Version 8.3 and resubmitted after the weekend of Oct. 20 will continue to be underwritten through DU Version 8.3.
According to Fannie Mae, the new DU version will include an update to the DU credit risk assessment and eligibility requirements that consider the probability of future serious delinquency, rather than default.
‘Based on an analysis of recent loan case files submitted to DU, the new credit risk assessment is expected to have a minimal impact on the percentage of eligible recommendations that lenders receive today,’ says Fannie Mae. ‘DU Version 9.0 will evaluate loan case files using the same risk factors currently evaluated in DU Version 8.3.’
Furthermore, with DU Version 9.0, the retirement of the Expanded Approval (EA) recommendations will be completed and the EA-I recommendation will no longer be returned.
‘As the Refer with Caution/IV recommendation is also considered an EA recommendation, it will be replaced with a recommendation of Refer with Caution,’ Fannie Mae continues. ‘EA-I, EA-II, and EA-III recommendation levels will continue to be returned for DU Refi Plus loan case files; however, the number of DU Refi Plus loan case files that receive an Approve recommendation will be expanded due to an update to the credit risk assessment.’