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.
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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 gsouto@mccuemortgage.com
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