Most loans are underwritten thru DU, BUT there has never been a fairly complete set of instructions in place for loans that are Manually Underwritten - that is until NOW! Why would you care? Because Fannie has also "interpreted" specific risk factors, including co-borrowers, liquid reserve and self-employed borrowers and how they now affect the overall risk of repayment. It's entirely updated with the new rules that aren't even reflected in the Selling Guide. In other words, this worksheet essentially analyzes a loan file the same way that DU does. It's a fantastic tool for those who want to look at where their loan stands before it's submitted to DU.
(Fannie Mae Announcement 08-26, October 16, 2008 - Comprehensive Risk Assessment Approach to Manual Underwriting)
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