Fannie Mae Announces Enhancements To Desktop Underwriter

Fannie Mae announced enhancements to its Desktop Underwriter that will streamline originations for lenders and buyers.

The new capability automates the validation of borrowers’ assets, income, and employment and produces a 12-month report. Bank statements, information about assets, and other data from third-party vendors become available in just one step.

The report can then also be used to consider positive rent payment and cash flow history, a feature that supports borrowers with little or no credit history.

Fannie Mae says lenders can “achieve Day 1 Certainty” when with validated information, potentially increasing loan quality and reducing repurchase risk.

“Fannie Mae is continually focused on modernizing the mortgage finance experience and exploring new ways to help our lenders open more doors for aspiring homeowners in a responsible and sustainable way,” said Cyndi Danko, Fannie Mae Senior Vice President and Single-Family Chief Credit Officer.

“With this new update in Desktop Underwriter, we are removing a hurdle from the loan application process and bringing greater speed, simplicity, and certainty to both lenders and borrowers.”

Lenders using the new reports can close faster and possibly improve costs through reduced staff time, as well as increase their number of approved borrowers through the cash flow and rent payment assessments.

The enhancement is one of several ways Fannie Mae has recently expanded opportunities for homebuyers, alongside its income calculator for self-employment income streams, down payment assistance tool, and award-winning HomeView and HomeView en Español systems.

Mortgage applications increased last week but have wavered as rates crept back up in February. Many Americans are still barred from buying their dream home because of soaring prices and costs.

Fed Chairman Jerome Powell reiterated this week that rate cuts may be coming this year, but not anytime soon.