What is DU and LP in mortgage?

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.

Is FNMA a DU or LP?

Before we submit every loan, we first MUST get an “automated approval” from “DO” or “DU” (Fannie Mae’s “Automated Underwriter”), or from “LP” (Freddie Mac’s “Automated Underwriter”). “DO” stands for Desktop Originator and “DU” stands for Desktop Underwriter – both names are used interchangeably and mean the same thing.

Does Freddie Mac accept DU findings?

Mortgage Guidelines On Conforming Loans Fannie Mae and Freddie both have capped Debt to Income Ratios up to 50% DTI to get an approve/eligible per DU/LP FINDINGS: There is no front end debt to income ratio requirements per both FANNIE/FREDDIE Guidelines.

Can FHA loan be run through LP?

Before using Loan Product Advisor with FHA TOTAL to assess FHA loans, you must be an FHA-approved broker or lender. Only FHA-approved Direct Endorsement lenders can deliver mortgages to FHA for endorsement.

What is DU in mortgages?

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.

What is Max DTI for LP?

Maximum DTI Ratios For manually underwritten loans, Fannie Mae’s maximum total debt-to-income (DTI) ratio is 36% of the borrower’s stable monthly income. The maximum can be exceeded up to 45% if the borrower meets the credit score and reserve requirements reflected in the Eligibility Matrix.

Does Freddie Mac’s loan Prospector reject a loan?

Yes, the Underwriter Can Reject Your Loan.

How many times can you run LP?

A well-cared for record can be played more than 100 times, with only minor audible sound degradation. If carefully maintained the same disc could be played many hundreds of times in its lifetime. A record played on poorly set-up equipment can be destroyed in just one spin.

How do I release LP findings to lender?

Releasing a Loan Casefile Back to an Originator

  1. Select the loan casefile you want to release.
  2. The Loan Information screen appears. In the navigation bar on the left side of the screen, click Release Loan.

How long does a Du approval take?

How long does underwriting take? Underwriting—the process by which mortgage lenders verify your assets, and check your credit scores and tax returns before you get a home loan—can take as little as two to three days. Typically, though, it takes over a week for a loan officer or lender to complete.

Can you share DU findings?

Unless otherwise required by law, no other sharing of the DU Findings Report is permitted.