Fannie Mae’s Desktop Underwriter (DU) version 12.0, launching on Jan. 11, enhances risk assessments by integrating new market data and performance insights to better evaluate borrowers.
The significant update aims to empower access to homeownership for borrowers with limited credit history and modifies the impact of certain debts, enhancing eligibility for loans.
First-time homebuyers will see favorable treatment in the risk assessment, with evidence supporting that their loans perform better compared to those from repeat buyers.
After major derogatory credit events, borrowers must now meet specific waiting periods before being considered eligible for loans, which will affect their ineligibility designation.
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