Fannie Mae recently announced the release of Desktop Underwriter (DU) Version 11.0, which includes updates to align with the Selling Guide, a DU risk assessment update, and retirement of DU Version 10.2. DU Version 11.0 will apply to new loan casefiles submitted to DU on or after the weekend of Mach 13, 2021.
Fannie Mae made several updates to align DU Version 11.0 with the Selling Guide,including, but not limited to, (i) DU will no longer evaluate loan casefiles for appraisal waiver eligibility when rental income or accessory unit income is provided on the loan application for use in qualifying; and (ii) DU will check the source of the gift of equity, and when the source of the gift is not a relative or unmarried partner, the loan casefile will receive an Ineligible recommendation.
DU Version 11.0 includes an updated risk assessment to evaluate the composition of the borrower’s debt, specifically looking at revolving debts and student loan debts. DU will no longer consider self-employment or borrowers whose total annual income is composed of a higher percentage of variable income as representing increased risk.
Loan casefiles created in DU Version 10.3 and resubmitted after the weekend of March 13, 2021, will continue to be underwritten through DU Version 10.3.