WBK Industry News - Federal Regulatory Developments

Fannie Mae Announces DU Enhancements to Expand Eligibility to Underserved Borrowers

Fannie Mae recently updated to DU Version 11.0 to help lenders qualify more loans where the borrower does not have a credit score.  The enhancements, among other things: 

  • Expand eligibility criteria for loans where no borrower has a credit score;
  • Enable the evaluation of a borrower’s monthly cash flow over a 12-month period to potentially enhance their credit risk assessment; and
  • Consideration of factors such as LTV ratio, liquid reserves, DTI ratio and property type where no borrower has a credit score. 

The DU Release Notes may be found here.  The Press Release may be found here.