DU® for Government Loans is the component of Desktop Underwriter® (DU) that is used by DU licensees in conjunction with their underwriting of FHA loans and VA loan casefiles, the repayment of which are insured by FHA (Federal Housing Administration) or guaranteed by VA (U.S. Department of Veterans Affairs).
The use of DU for Government Loans (including the submission of loan casefiles to the pmiAURASM risk model for VA loans), is governed by the Fannie Mae Software Subscription Agreement and the DU (Expanded Use Version) Schedule. FHA lenders that have not executed these documents should contact their Fannie Mae customer account team.
Note: From here on in this guide, DU for Government Loans is referred to as DU.
This guide provides detailed information on data entry requirements and system functionality for submitting FHA loan applications to DU. The instructions in this guide are provided to facilitate lenders’ accurate submission of data to DU and are not intended to interpret, explain, or supersede FHA’s guidelines or requirements.
DO/DU user interface
The Desktop Originator®/Desktop Underwriter (DO®/DU) user interface is Fannie Mae’s online tool for entering data in the loan application, ordering credit reports, submitting loan casefiles to DU, and assisting lenders in managing the process of underwriting their loans in an automated fashion.
FHA DE underwriter
To participate in FHA’s mortgage insurance program, HUD requires that FHA lenders employ Direct Endorsement (DE) underwriters. It is each lender’s responsibility to ensure that DE underwriters meet the qualifications outlined in HUD Handbook 4000.4 REV-1, Chg 2.
Loan application
The term “loan application” refers to Fannie Mae’s online version of the Uniform Residential Loan Application (Form 1003) in the DO/DU user interface. The online loan application is available in two formats: Quick 1003 and Full 1003. The Quick 1003 allows users to submit a loan casefile to DU with a minimal set of loan data. The Full 1003 allows users to complete all data fields. However, regardless of the format used (Quick 1003 or Full 1003), DU analyzes only the
DU User’s Guide for FHA Loans 1 June 2008
required (minimal) data elements to provide an underwriting recommendation and evaluate the eligibility of a loan casefile for FHA insurance or VA guarantee.
Loan application sections
Data entry instructions for FHA loan casefiles are provided in this guide for the following sections within the online loan application:
Subject Property Address and Purpose of Loan
Borrower Information
Employment Information
Monthly Income and Combined Housing Expense
Assets
Real Estate Owned
Liabilities
Details of Transaction
Declarations
Information for Government Monitoring Purposes
Additional Data
FHA Government Information