Important Updates – Applies to Fannie Mae Conventional Guidelines
Positive Rental Payment History
This past weekend Fannie Mae implemented DU Version 11 where positive rent payment history may be used by DU in the risk assessment. Loan Originators may follow the guidance in the DU Version 11 Release Notes in reference to the data entry requirement for the enhanced credit risk assessment to be analyzed by DU which are available when the borrower meets the below requirements:
- Must be a first-time homebuyer,
- The borrower must have been renting for at least 12 months,
- The borrower’s rent payment must be $300 or more per month,
- Purchase transaction only,
- Primary residence only,
- The borrower(s) must have a credit score per FLCBank requirements, and
- The Loan Originator must obtain a VOA report with 12 months of bank statement data through an authorized DU validation service asset verification report vendor.
Credit Score Eligibility
Also as of September 18, 2021, DU will use an average median credit score for all borrowers on the transaction for loans with more than one borrower. This update will result in DU Approve/Eligible results for borrowers with a credit score less than 620.
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