DO/DU Updates

DU Version 8.2 Implemented

Fannie Mae implemented Desktop Underwriter® (DU®) Version 8.2 the weekend of December 11, 2010.   

As a reminder, among other changes, this release:

• Incorporates foreclosure policy changes in Announcement SEL-2010-08, Underwriting Borrowers with a Prior Foreclosure, to DU loan casefiles;

• Implements a preforeclosure sale message when a borrower's credit report indicates that an account may have been included in a preforeclosure sale;

• Reflects updated rounding logic for LTV/CLTV/HCLTV ratios, outlined in Lender Letter LL-2010-03, An Introduction to Fannie Mae's Loan Quality Initiative and Announcement SEL-2010-01, Selling Guide Updates for the Loan Quality Initiative;

• Removes Community Seconds® loan eligibility in connection with interest-only loans, per Announcement SEL-2010-07, Selling Guide Updates;

• Per Announcement 2010-13, Selling Guide Updates:

  • Removes all references to Flexible mortgage products and permits certain transactions, up to 97% LTV/CLTV/HCLTV ratios, under standard eligibility for DU loan casefiles;

  • Updates minimum borrower contribution requirements;

  • Updates income and employment messages to reflect income policy changes;

  • Incorporates revolving debts in the debt-to-income ratio;

  • Revises unit number message to include documentation requirements and new special feature code;

• Removes the Interest Rate Tolerance message per Announcement SEL-2010-11, Undisclosed Liabilities and Re-underwriting Requirement;

• Updates the DU Underwriting Findings report to reflect the HCLTV ratio, submission number, and DU version in the Summary section; and

• Retires DU Version 8.0.

For complete details, see the DU Version 8.2 Release Notes, FAQs, and Eligibility Matrix available on eFannieMae.com.