Good Morning,
I am sure that most of you are completely unaware of this as was I until one of the many lenders that I do business with called me late last night to tell me of these dramatic new changes.
On Saturday, May 19th there will be significant changes to DU being released. It would behoove all of us to make sure you run DU on loans before this date (especially MY COMMUNITY loans) even if the loan is not 100% ready. As of the 19th DU will be a lot more conservative, whereas loans that would normally be approved, now may not. The flip side to the coin is that DU will also allow some options for loans that previously would have been sub-prime. In any event, the changes are coming Saturday.
Just in case some you of do not know what the heck DU is, I will tell you. DU is the Automated underwriting system utilized by Fannie Mae. Therefore almost all mortgage brokers, loan officers, processors, underwriters etc... use this program. It helps mortgage professionals like myself determine if a loan qualifies under the conforming loan guidelines set down by Fannie Mae, who along with Freddie Mac (whose underwriting system is called LP) are the two major buyers of mortgages in the U.S.A.
For more information on the upcoming changes I encourage all of you to contact your Fannie Mae account reps and or wholesale broker sponsors for a more detailed explanation on the exact guideline changes coming this Saturday.
Thank you and have a great day.
Best regards,
Michael Savas
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