-
WHAT IS REFERRED/ELIGBLE PER DU FINDINGS
CAN YOU PLEASE EXPLAIN THE AUTOMATED UNDERWRITING SYSTEM.
WHAT IS REFERRED/ELIGBLE PER DU FINDINGS?
-
1 Reply
-
Fannie Mae and Freddie Mac Automated The Systems of Underwriting (AUS).
These automated underwriting systems assess mortgage loan applications. They are called Fannie Mae’s desktop underwriter (DU) and Freddie Mac’s loan product advisor (LPA).
AUS Findings:
Approve/Eligible: This phrase indicates that the borrower meets all program requirements and that no further documents are necessary.
Refer/Eligible: A borrower qualifies under certain conditions, but higher risks may require manual underwriting.
Refer with Caution: It means that there is significant risk or non-eligibility, and it is rare for such a loan to be approved.
Significance of AUS Findings:
They help lenders determine how much documentation is required before approving loans at different levels of risk while still ensuring compliance with agency guidelines for borrowers.