Desktop Underwriter Credit Risk Assessment Updates
Starting November 15, 2025, Desktop Underwriter® (DU®) will no longer require a minimum third-party credit score. DU does not use credit scores to assess credit risk. It will use our proprietary credit risk assessment to determine a minimum credit risk threshold when evaluating loan eligibility for sale to Fannie Mae.
Why we’re making this change
Previously we used a minimum credit score to determine whether a borrower was eligible for a credit risk assessment. We’re replacing that requirement because it does not affect our ability to assess credit risk and ensures that the DU risk recommendation is agnostic of third-party credit scores.
For over 25 years, DU has used its proprietary credit risk models to evaluate mortgage delinquency risk, which are more comprehensive than a credit score. Our models evaluate details of the borrower’s credit history and were the first to include trended credit data and on-time rent payment history as part of DU’s overall risk assessment. This update builds on this foundation and aligns with our long-standing credit risk management standards.
Risk evaluation in mortgage underwriting must account for a broad set of factors, such as borrower reserves, debt levels, property characteristics, and loan purpose. The use of proprietary risk assessment models is a widespread practice across various industries, including ours.
What does this mean for investors, lenders and borrowers?
- We anticipate this change will have a negligible impact on the number of loan applications receiving an Approve/Eligible recommendation.
- DU risk recommendations will not change based on the third-party credit scores that lenders may use.
- Loans sold to Fannie Mae must continue to include a third-party credit score per the Selling Guide.
Our Commitment
DU has helped lead the way in mortgage credit risk management for more than 30 years. We are committed to driving new innovations rooted in sound credit risk management practices that ensure we are responsibly expanding access to homeownership and serving as a dependable partner in the US housing finance system.
