Chart your course with confidence
Rely on DU’s comprehensive examination of the risk factors in a mortgage application and credit report, regularly updated and informed with the latest market conditions and loan performance data, to effectively and efficiently evaluate credit risk and extend the benefits of Fannie Mae’s underwriting innovations.
Now Available
Introducing Desktop Underwriter® (DU®) V. 12.0, which represents a major update to DU’s credit risk assessment and opens new opportunities for homeownership. Underwrite with even greater confidence, qualify more borrowers soundly, and get ready for business growth.
DU V. 12.0 delivers:
Enhanced risk and eligibility assessment 
New ways to evaluate borrowers with thin or no credit 
More possibilities through rent history and Cashflow assessment
Enhanced risk and eligibility assessment
DU V. 12.0 delivers improvements in its ability to analyze the risk of mortgage delinquency through a comprehensive review of the risk factors in a borrower's loan application and credit report, supported by the inclusion of:
- Additional loan performance data across recent economic cycles
- The latest market conditions to more effectively consider the impact of economic factors found to be predictive of early delinquency risk
New ways to evaluate borrowers with thin or no credit
DU V. 12.0 expands the number of borrowers with limited or no credit that can benefit from automated underwriting:
- Borrowers without a credit score can be evaluated by DU and receive recommendations for more types of loans
- Loans where no borrower has a credit score and at least one borrower has a minimum of one credit or installment account on their credit report are subject to standard eligibility guidelines
More possibilities through rent history and Cashflow assessment
Additional borrowers can benefit from DU's assessment of cash flow and on-time rent payments:
- Borrowers with a credit score can benefit from a Cashflow assessment (previously only those without a credit score were eligible)
- Any borrower currently paying rent can benefit from consistent rent payment history reported on their credit report in addition to a 12-month asset verification report
Enhanced risk and eligibility assessmentEnhanced risk and eligibility assessment
DU 12.0 delivers improvements in its ability to analyze the risk of mortgage delinquency through a comprehensive review of the risk factors in a borrower's loan application and credit report, supported by the inclusion of:
- Additional loan performance data across recent economic cycles
- The latest market conditions to more effectively consider the impact of economic factors found to be predictive of early delinquency risk
New ways to evaluate borrowers with thin or no creditNew ways to evaluate borrowers with thin or no credit
DU 12.0 expands the number of borrowers with limited or no credit that can benefit from automated underwriting:
- Borrowers without a credit score can be evaluated by DU and receive recommendations for more types of loans
- Loans where no borrower has a credit score and at least one borrower has a minimum of one credit or installment account on their credit report are subject to standard eligibility guidelines
More possibilities through rent history and cash flow assessmentMore possibilities through rent history and cash flow assessment
Additional borrowers will benefit from DU's assessment of cash flow and on-time rent payments:
- Borrowers with a credit score will be able to benefit from a cash flow assessment (previously only those without a credit score were eligible)
- Any borrower currently paying rent will be able to benefit from consistent rent payment history reported on their credit report in addition to a 12-month asset verification report
Explore what's new in DU V. 12.0
With this release, we’ve significantly improved our ability to rate loans that may experience a credit event when compared to loans that are more likely to perform. The model’s precision in forecasting credit events for a set of loans has also greatly increased. These are both remarkable achievements considering DU’s established history as an industry leader. The result is greater confidence in DU’s Risk Assessment throughout market cycles, an increased ability to assess mortgage credit risk safely, and the ability to provide more borrowers with access to affordable, sustainable mortgage solutions.
Discover how DU V. 12.0 is delivering certainty throughout the lending journey
New debt composition evaluation criteria
Variable income is no longer evaluated, and the composition of revolving debts within the borrower's total monthly expense is no longer considered.
Student loan debt linked to better loan performance
Our research showed that loans with debt composition that included student loan debt performed better than loans without, assuming similar total debt levels and other risk factors remained constant. In response, we adjusted how we evaluate the consideration of debt composition for student loans, which we first added in the DU V. 11.0 release.
First-time homebuyers demonstrate lower risk
Research also showed that loans for first-time homebuyers performed better once controlling for other credit characteristics. As a result, DU V. 12.0 now considers first-time homebuyer status as a mitigating factor when assessing risk.
Expansion of rent payment data use
Following recent advancements in rent reporting, we observed higher rates of borrowers with rent payment history reported in their credit reports ─ a number that nearly tripled in less than three years.
In response, we have expanded the use of rent payment history data sources to incorporate rent reported on a credit report in addition to bank statements. In doing so, we can increase the availability of positive rent payment consideration to more borrowers.
Cashflow assessment capability applies to more borrowers
Cashflow assessments now apply to borrowers with or without a credit score, potentially impacting up to 7% of recent applications but could eventually affect substantially more borrowers based on increased availability of 12-month asset verification report data.
Click to explore the enhancements of DU V. 12.0
Learn more about these updates and other changes in support of the Mission Index™, Value Acceptance, and Value Acceptance + Property Data in the Release Notes.
