B3-2-11, DU Underwriting Findings Report (09/07/2022)

The DU Underwriting Findings report summarizes the overall underwriting recommendation and eligibility component of the loan casefile and lists certain steps necessary for the lender to complete the processing of the loan file.

Specific messages are provided for each individual loan casefile. These detailed messages are designed to assist lenders in processing and closing loans. However, the level of documentation recommended by DU may not be adequate for every borrower and every situation.

The DU Underwriting Findings report is divided into sections. Each section contains a different type of message. Certain messages will be provided based on the DU credit risk assessment. For example, some messages are returned only on Approve recommendations, while other messages are returned only on Refer with Caution recommendations.

DU provides a number of “potential red flag” messages designed to help the lender detect inconsistencies in the loan casefile. Neither the presence nor absence of these messages alters the lender’s responsibility to ensure accurate information in all areas of the loan process or otherwise comply with applicable law, including the Fair Credit Reporting Act.

Note: The appearance of these messages does not affect the underwriting recommendation from DU. Rather, they are designed to help lenders detect inconsistencies. Furthermore, the absence of any of these messages does not indicate or imply Fannie Mae’s acceptance of the data submitted to DU.

The following lists potential red flag messages:

• Excessive resubmissions: A message alerts lenders when an unusually high number of loan resubmissions may be the result of data manipulation.

• Frozen credit report: A message alerts lenders when a borrower has frozen their account with one of the credit repositories.

• Potential casefile ID reuse: A message alerts lenders when the subject property address, Doc File ID, occupancy, or loan purpose have been modified. The message serves as a reminder that the DU loan casefile ID is unique to an individual loan and the same casefile ID may not be used to underwrite more than one loan in DU.

More information can be found in the Desktop Underwriter Potential Red Flags Messages matrix.