Tips and Tricks

What is DU LP underwriting?

What is DU LP underwriting?

DU stands for Desktop Underwriter and LP stands for Loan Prospector. Loan originators use DU and LP to determine whether a loan meets Fannie Mae or Freddie Mac’s eligibility requirements which means DU or LP approval is a critical step towards closing on a mortgage.

What is DU in underwriting?

Desktop Underwriter (DU) is an automated underwriting system developed by Fannie Mae to help mortgage lenders make informed credit decisions on conventional and government loans. It then covers how to interpret underwriting recommendations and review reports accurately.

What is the difference between DU and LPA?

What is DU and LPA, you might ask? DU is Desktop Underwriter and is Fannie Mae’s underwriting software. LPA is Loan Product Advisor and is Freddie Mac’s underwriting software; most conforming loans are run through one of these software programs.

Is LP Fannie or Freddie?

Fannie Mae uses the automated underwriting system called Desktop Underwriter or DU, while Freddie Mac uses the AUS called Loan Prospector or LP. Both of these systems do similar functions. They are the systems that lenders submit a home buyer’s information to for automatic approval.

Is Freddie Mac a DU or LP?

How can I get Du approval?

Loan Application

  1. Gather and complete 1003 mortgage application form.
  2. Obtain consent to order credit, income, employment, and asset verification reports and order the reports.
  3. Order automated VOE/VOI report.
  4. Explain the verification of assets (VOA) process to the borrower.
  5. Confirm the borrower executed the VOA process.

Is LP Fannie Mae?

Can you use LP for FHA loans?

This mortgagee letter announces that FHA has approved Freddie Mac’s Loan Prospector (LP) for use on FHA insured mortgages effective March 2, 1998.

Will underwriter approve my loan?

An underwriter will approve or reject your mortgage loan application based on your credit history, employment history, assets, debts and other factors. It’s all about whether that underwriter feels you can repay the loan that you want. But a seasoned loan originator is the integral part of the whole process, he says.