Fannie Mae Updating Desktop Underwriter (DU)

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149


During week of April 23rd Fannie Mae will be making an update to Desktop Underwriter (DU).  The update is to implement a new feature meant to address property values for refinance loans.  Fannie Mae feels that the new changes will create more transparency to the way that Fannie Mae's Desktop Underwriting System estimates the value of a property in order to determine if it will be eligible for a appraisal waiver offer.

If Fannie Mae feels that their system has enough information about a property to estimate the value, DU will issue the following message:

"Based on the standardized address, Desktop Underwriter estimates the value of the property at $<estimated value>. This estimated value was developed by internal proprietary models to help determine eligibility for a DU Refi Plus property fieldwork waiver. It is not the result of an appraisal, nor was it developed by a state licensed or certified appraiser. This estimate is intended to be used solely by the lender to underwrite the refinance of the borrower's mortgage loan."

If Fannie Mae feels that their system does not have enough information about a property to estimate the value, DU will issue this message:

"Based on the address and other information available to Desktop Underwriter, this property is not eligible for a DU Refi Plus property fieldwork waiver."

It will be interesting to see how this update will impact the approval process on refinance loans.  I am holding off my opinion on this, but I am always concerned about any system that trys to provide automated property value estimates.



 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or


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  1. Gabe Sanders 04/22/2012 08:45 PM
Mortgage / Finance
What is New in Loan Products
Real Estate Rookie
desktop underwriter du

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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the information. It would be nice if the program was also good for  home purchases not just for refinancing.

Apr 19, 2012 09:12 PM #1
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional


What about condition? Sounds like a recipe for controversy to me. But like you, I will take a "wait and see" attitude.

Apr 19, 2012 10:05 PM #2
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY

Anything automated makes you tend to think that certain unique qualitatitive characterstics of a property could fall in between the cracks of their system, but like other's mentioned a wait and see approach is important to see how it unfolds.

Apr 19, 2012 10:37 PM #3
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I wish it was as siple as Fannie is suggesting it will be. There are so many variations that come into play. We'll deal with it, just like everything else that will come along.

Thank you for sharing the post with all of us.

Apr 19, 2012 10:38 PM #4
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

George, I hope its not Fannie Mae's approach to Zestimates. Too many variables involved to automate this. Let's see what happens.

Apr 19, 2012 10:43 PM #5
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

I wonder if the lenders will abide. They could conceivably add their own overlays to that


Apr 19, 2012 11:30 PM #6
Shay Campbell
Universal American Mortgage Company - Raleigh, NC
Raleigh, NC

This update is not for all refinances, it's only for loans that is eligible for the "DU Refi Plus" program.  "DU Refi Plus" is the name Fannie Mae uses for their HARP program loans.  Thanks for the blog.  This is good information.

Apr 19, 2012 11:38 PM #7
Anthony Daniels
Coldwell Banker - San Francisco, CA
SF Bay Area REO Specialist

Anything FNM "updates", usually means it is still at least 1 year behind the curve.

Good post, either way.

Apr 20, 2012 01:21 AM #8
Barbara Altieri
RealtyQuest/Kinard Realty Group, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- Sounds like FNMA is headed down Zillow lane. What exactly does 'enough information' mean?  I agree with your concern about how this will play out.

Apr 20, 2012 07:08 AM #9
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

YEs sounds like Zillow to me. Doesn't sound so accurate here.

Apr 20, 2012 09:09 AM #10
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, maybe I'll hold off on my opinion as well...when an agency wants to create more "transparency" I tend to worry...I don't think it went so well for the purchaser when the new GFE's came out and the same goes for the new appraisal Data Set...who in the world can make any sense out of that?

Apr 20, 2012 09:33 AM #11
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

George - Yes, it will be interesting to see how it plays out.  I share your concern with processes that are so automated like that.  Hopefully there is a way to easily resolve things when there are discrepancies.

Apr 20, 2012 08:29 PM #12
June Tassillo
Owner/Broker RE/MAX Elite Realty - Franklin, NC
Let me help you with the next phase of your life!

George ~ So it will all depend on what a person puts into the system as to what you will get out.  If it needs more information will they tell that person what it needs?  How can they Zestimate every Local Market?  

Apr 21, 2012 09:40 PM #13
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

It ain't Zillow people......

AVM has been used for years. And has been deemed reliable by the lending industry. Zillow has not been deemed reliable.


Apr 22, 2012 11:18 PM #14
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