Fannie Mae recently announced that it is releasing updates to the Desktop Underwriter.
Some of the major changes include a desktop appraisal option, high-balance LLPA waiver, updates to align with Selling Guide and others.
Updates will go live March 19.
Desktop Appraisal Option
With this update, loan professionals will have an option to retrieve desktop appraisals via Uniform Residential Appraisal Report. Eligible loan caseloads include purchases that are one-unit principle residence. The loan-to-value ratio must be less than 90%.
Second homes, investment properties and construction-to-permanent loans are some of the excluded transactions.
If a client is eligible, the system will issue a message that the buyer can move forward with desktop appraisal.
High-balance LLPA Waiver
Desktop Underwriter will ping applicants who are eligible for the LLPA waiver, which must be delivered with an SFC 873.
The Loan-Level Price Adjustment (for second home) specifies that the high-balance LLPA will not apply in certain circumstances. Qualifying income cannot be less than or the same as the applicable median income limit. The borrower cannot be a first-time buyer either.
Potential Casefile ID Reuse Update
If the property in question has a modified identifier, the system will alert lenders that the casefile is unique to an individual mortgage. In this case, the casefile ID cannot be underwritten with more than one mortgage loan.
Selling Guide updates
The system will include unemployment benefits within the public assistance policy. It provides another way to clarify income.
The updates will make it easier for applicants with second incomes to qualify. Desktop Underwriter can determine if income from a second job is being used as a qualifier. It also streamlines the documentation requirement process for incomes.
Gifts and grant funding will be specified. Sometimes, deposited funding is not readily included as an asset. The update will send a message that funding has been deposited and will streamline the process by which it can be verified through documentation.
Changes are coming to the ReFiNow as well.
These loan casefiles can be underwritten as standard limited cash-out refinance, even if the credit score is under 620. It’s an update to the logic that makes these determinations.
For extra clarity, the system will alert loan officers that casefiles with a representative credit score under 620 cannot move ahead with ReFiNow.
Borrowers financing a home with a Community Lending loan who are tied to more than two financed properties are not eligible for delivery through Fannie Mae. Before the update, messages indicated ineligibility, but they did not specify the number of financed properties. The update will give more specifics.
In addition, Desktop Underwriter supports a temporary IRS rule dealing with certain business deductions.
To learn more, visit Fannie Mae’s Technology Integration Resources.
