What is the difference between DU and LP?
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What is the difference between DU and LP?
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.
Does Fannie Mae use Desktop Underwriter?
Desktop Underwriter is an automated system for mortgage underwriting that calculates if a loan meets approval requirements. It is used by Fannie Mae and, in some cases, the Federal Housing Authority.
Does Fannie Mae use DU or LP?
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.
What underwriting system does Fannie Mae use?
Desktop Underwriter
Fannie Mae – Desktop Underwriter (DU) The industry standard in mortgage underwriting is managed through an automated underwriting system (AUS) called Desktop Underwriter (DU).
Whats the difference between Fannie Mae and Freddie Mac?
The primary difference between Freddie Mac and Fannie Mae is where they source their mortgages from. Fannie Mae buys mortgages from larger, commercial banks, while Freddie Mac buys them from much smaller banks.
What is Freddie Mac LPA?
Loan Product Advisor is our enhanced automated underwriting system. It helps simplify your origination processes and provides you with greater certainty that your loans meet Freddie Mac eligibility requirements.
What is DU Desktop underwriter?
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 minimum credit score for Freddie Mac?
660 or higher
According to Freddie Mac’s requirements, you’ll need a FICO score of 660 or higher to qualify for a Home Possible loan.
What is DU Desktop Underwriter?