Under FNMA, which program is used by lenders?

Under FNMA, which program is used by lenders?

• A. Desktop Underwriter (DU)
• B. Desktop Originator (DO)
• C. Loan Prospector (LP)
• D. Desktop Originator (DO) and Loan Prospector (LP)

Answer: (A)

Under Fannie Mae, lenders rely on an automated underwriting system to determine if a loan meets guidelines. Desktop Underwriter analyzes the borrower's credit, income, assets, debts, and property details and provides an underwriting decision (such as approve/eligible, refer with/without conditions, or refer for manual underwriting) to guide the lender’s next steps. Loan Prospector is Freddie Mac’s automated underwriting system, not Fannie Mae’s, so it isn’t used for FNMA loans. Desktop Originator is an origination tool for collecting and submitting loan data, not the underwriting engine itself. So the FNMA program used by lenders is Desktop Underwriter.

Under Fannie Mae, lenders rely on an automated underwriting system to determine if a loan meets guidelines. Desktop Underwriter analyzes the borrower's credit, income, assets, debts, and property details and provides an underwriting decision (such as approve/eligible, refer with/without conditions, or refer for manual underwriting) to guide the lender’s next steps.

Loan Prospector is Freddie Mac’s automated underwriting system, not Fannie Mae’s, so it isn’t used for FNMA loans. Desktop Originator is an origination tool for collecting and submitting loan data, not the underwriting engine itself. So the FNMA program used by lenders is Desktop Underwriter.