Today, Fannie Mae went live with their updated, automated underwriting system, or AUS for short. An automated underwriting system is the computer brain that, when proper information is inputted, is able to spit out a result from Fannie Mae to reveal whether or not a loan is acceptable as well as what will be needed from the borrower.

The major change today is the way that the credit is viewed. In the past, payment on credit cards was only viewed as either late or on-time. With the new system, the amount of the payment, or “trended credit,” is taken into account. Those who just pay the minimum balance due will be viewed differently than those who pay more or in full every month.

While there are a few other enhancements in Desktop Underwriter, or DU version 10.0, the trended credit will likely have the largest impact. Those who qualified before may not qualify now, and those who didn’t qualify before may be qualified now.

As always, it is important as every to make sure that you are working with a seasoned team of professionals. If you are looking for an experienced team, please call us today at 321-265-4000 or email me Joe Harris at joe@morganfinancial.net. Thank you, and we look forward to hearing from you!