Did You Know? Fannie Mae is updating its Desktop Underwriter (DU) system to Version 12.0 for loan case files submitted or resubmitted on and after January 11, 2025.
Key Changes in DU Version 12.0
• Debt Composition: DU will no longer consider the structure of revolving debts when evaluating a borrower’s debt composition. However, revolving debts will still be included in the debt-to-income ratio (DTI) calculation.
• Variable Income: DU will no longer factor in variable income sources (bonus, overtime, commission) in the risk assessment.
• First-Time Homebuyers: First-time homebuyer status will be considered a risk-mitigating factor.
• Loans for borrowers without Credit Scores: Expanded eligibility for loans where no borrower has a credit score. Specific requirements apply based on the presence of credit accounts on the borrower’s credit report. Reach out for more info when No Borrower has a credit score.Â
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