On Mar. 24, Fannie issued Desktop Underwriter V. 12.0 release notes.
Fannie reported Desktop Underwriter (DU) Version 12.0 will be implemented May 17.
Updated condo project manager, value acceptance; changes align with Selling Guide.
Condo Project Manager
DU will provide condo project information from condo project manager (CPM) in the property and appraisal Information section of the DU underwriting findings report.
CPM must be used to certify condo projects under lender-delegated full review process
Set project matching and status messages; provided delivery restriction process.
Value Acceptance
Loan casefiles with a construction loan type of construction-to-permanent will not be eligible for value acceptance, value acceptance + property data, or a hybrid appraisal.
Any casefile with construction loan type of construction-to-permanent eligible for value acceptance prior to May 17 will lose eligibility if resubmitted after weekend of May 17.
Refinance of Fannie Loans
When DU can identify that the borrower's existing mortgage loan is a Fannie loan, the lender will not need to document that the loan being refinanced is owned by Fannie.
For LTV ratios over 95% and certain condos eligible for project eligibility waiver.
Selling Guide Alignments
Message will be issued on casefiles with temporary interest rate buydowns reminding lenders what is considered a moderate/significant interest rate buydown, #222238.
Will also specify what special feature code (SFC) should be provided at loan delivery.
Message issued for leasehold estates updated to remind lenders to verify unexpired term of ground lease exceeds maturity date of the loan by 5 years or more, #232519.
Additionally, SEL-2024-07 clarified policy to resolve inconsistencies related to when a manufactured home requires submission to Project Eligibility Review Service (PERS).
Updated message on limited cash-out refinances with exception language, #236885.
Will issue message requiring homeownership education for purchase casefiles when no borrower on loan has a credit score, regardless of accounts reported on credit report.
Also updated rental and other employment income messages to align with guide.
Effectiveness
Changes apply to DU V. 12.0 loan casefiles submitted or resubmitted to DU on or after the weekend of May 17, 2025, except for the Condo Project Manager changes.
CPM data will provided on new DU V. 12.0 loan casefiles created on or after Jun. 23.
