The Desktop Underwriter (DU) Findings Report is a vital part of the mortgage approval process generated by Fannie Mae’s automated underwriting system, Desktop Underwriter. When a lender submits your loan application through DU, it quickly analyzes your credit, income, assets, and property details to determine eligibility based on established guidelines.

This report serves as both an overall loan recommendation and a checklist of conditions you must meet for final approval. Typical decisions include:

  • Approve/Eligible: Your loan meets Fannie Mae’s standards but requires submitting various verification documents such as pay stubs, tax returns, bank statements, and an employment verification.
  • Refer/Eligible: The application requires manual review due to unique factors like unusual income or credit complexities.
  • Refer/Ineligible: The loan doesn’t meet Fannie Mae criteria but other loan options may still be available.

Inside the DU Findings Report, you can expect details on income verification, asset validation, credit conditions, and property eligibility, including appraisal and insurance requirements. The report also highlights risk factors influencing further human underwriting review.

This automated system improves consistency and speeds up the underwriting process by standardizing loan assessments without human bias. However, “Approve/Eligible” is conditional on meeting all documented requirements, as a human underwriter must verify final documentation before closing.

To maximize your chances of smooth DU approval, ensure accuracy in your application, keep financial documents organized, avoid major credit changes during the process, and maintain open communication with your lender.

For borrowers wanting to understand mortgage underwriting further, see our Mortgage Underwriting guide. To learn about the Fannie Mae backed loans, visit Government-Sponsored Enterprise (GSE) Loan.

Frequently Asked Questions

Can DU deny my loan?
Yes. A “Refer/Ineligible” result means your loan doesn’t qualify under DU for Fannie Mae purchase, although your lender might pursue alternative financing options.

How long does DU approval last?
DU findings generally require updated financial documents if processing extends beyond 60-90 days or if your financial status changes significantly, which may necessitate resubmission.

What is the difference between DU and LP?
DU is Fannie Mae’s automated underwriting system, while LP (Loan Product Advisor) is Freddie Mac’s counterpart. Both automate loan eligibility assessments based on their respective guidelines.

For official details, visit Fannie Mae’s Desktop Underwriter page: https://singlefamily.fanniemae.com/technologies/desktop-underwriter.

This understanding helps borrowers navigate the mortgage process more confidently and efficiently.