I would like to post Fannie Mae's most recent update to desktop underwriting as it outlines very important aspects and changes regarding the HARP refinance. You can read the full article here: https://www.efanniemae.com/sf/guides/duguides/pdf/current/rndodu90.pdf
Here's the most important changes that I see:
1. Retirement of Expanded Approval Recommendations
With DU Version 8.3, EA-II and EA-III recommendations were no longer returned for loan casefiles submitted to DU, except those underwritten as DU Refi Plus. With DU Version 9.0, the retirement of the Expanded Approval (EA) recommendations will be completed and the EA-I recommendation will no longer be returned. As the Refer with Caution/IV recommendation is also considered an EA recommendation, it will be replaced with a recommendation of Refer with Caution.
EA-I, EA-II, and EA-III recommendation levels will continue to be returned for DU Refi Plus loan casefiles; however, the number of DU Refi Plus loan casefiles that receive an Approve recommendation will be expanded due to an update to the credit risk assessment.
Here's the most important changes that I see:
1. Retirement of Expanded Approval Recommendations
With DU Version 8.3, EA-II and EA-III recommendations were no longer returned for loan casefiles submitted to DU, except those underwritten as DU Refi Plus. With DU Version 9.0, the retirement of the Expanded Approval (EA) recommendations will be completed and the EA-I recommendation will no longer be returned. As the Refer with Caution/IV recommendation is also considered an EA recommendation, it will be replaced with a recommendation of Refer with Caution.
EA-I, EA-II, and EA-III recommendation levels will continue to be returned for DU Refi Plus loan casefiles; however, the number of DU Refi Plus loan casefiles that receive an Approve recommendation will be expanded due to an update to the credit risk assessment.
The following are the recommendations that will be returned with DU Version 9.0: DU Recommendations | DU Refi Plus Recommendations |
Approve/Eligible Approve/Ineligible | Approve/Eligible Approve/Ineligible |
Refer with Caution | EA-I/Eligible EA-I/Ineligible |
EA-II/Eligible EA-II/Ineligible |