October 2016 - Changing of the Guard

TheMReport — News and strategies for the evolving mortgage marketplace.

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4 | TH E M R EP O RT MTECH Fannie Mae Upgrades Desktop Underwriter ENHANCEMENTS TO SYSTEM AIM TO SIMPLIFY THE UNDERWRITING PROCESS. F annie Mae has announced the implementation of enhancements to its Desktop Underwriter (DU) Version 10.0 aimed at providing more simplicity and certainty to lenders. The goal of DU 10.0 is to help lenders by using trended credit data—the first widespread use of trended credit data in the mortgage industry—to provide enhanced credit risk assessment, new underwriting capabilities to serve borrowers with no traditional credit and to serve borrowers who own multiple financed properties. "Desktop Underwriter trans - formed the industry when it was introduced over 20 years ago. (These) DU 10.0 enhancements highlight the continued invest - ments and improvements we're making in our technology to be better partners for our customers, and to provide access to mortgage credit for creditworthy borrowers," said Marianne Sullivan, SVP, Single-Family Business Capabilities, Fannie Mae. "We continue to listen to our customers and make improvements to DU that take into account how our lenders tell us they want to work and to help them better serve today's market." The enhancements to DU 10.0 include: • Using trended credit data for credit risk assessment: considering monthly payment amounts a borrower has made on revolv - ing accounts for the past two years, providing lenders with a more comprehensive risk assessment by offering more in - sight on a borrowers' tendency to pay off revolving lines of credit each month giving bor- rowers more control over their credit evaluation and increas- ing the likelihood that DU will recommend borrowers for approval who regularly pay off (or pay more than the required amount) of revolving debt. • Automated underwriting for bor- rowers with no traditional credit: DU 10.0 helps lenders more efficiently serve borrowers who are without a traditional credit history by automating and streamlining an underwriting process that was previously manual and time-consuming. The new system requires at least two non-traditional credit sources to be verified and at least one of these sources must be housing related. • Automated underwriting for borrow- ers with multiple financed proper- ties: the enhancements provide lenders with a simplified multiple financed properties policy, simplify the underwrit - ing process for lenders, improve operational efficiency, and help ensure fewer eligibility overlays, automate remaining eligibil - ity requirements, and deter- mine required reserves for all financed properties. Black Knight Facilitates Greater TRID Compliance USING PROPERTY TAX SHIELD, LENDERS CAN ACCESS CURRENT, ACCURATE PROPERTY TAX INFORMATION. B lack Knight Financial Services' Data & Analytics Division has introduced Property Tax Shield, a suite of products supporting lender compliance with property-tax tolerance rules for good faith loan estimates under the CFPB's TRID rule. The CFPB expects lenders to use the best information reasonably available to them to help meet TRID guidelines when estimating property taxes. Black Knight's Property Tax Shield's goal is to help reduce both lenders' expenses from application-to-close and the manual effort necessary to procure necessary data. It further stream - lines the process by allowing loan officers easy access to a borrower's application and information. Bigger, Better, and More Compliant Technological improvements intend to make lenders' jobs easier

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