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Fannie Mae Update: Frozen Credit
Release Date: January 12, 2018
Effective Date: January 12, 2018
Broker Bulletin #: 2018-3
Overview
Fannie Mae has updated Desktop Underwriter
©
(DU
©
) in regards to Borrowers with a freeze on their Credit Report. The change applies to DU Version 10.0 and 10.1 loan casefiles submitted or resubmitted to DU after November 18, 2017. The change allows DU to now give an Approval even if the Borrower has a freeze on their Credit with one of the three repositories.
Details
If DU detects that the Borrower's Credit is frozen on one of the three repositories, DU will issue a potential Red Flag Message and the loan casefile will be underwritten using the credit data received from the other repositories. The potential Red Flag Message will read:
"Based on the credit data received, a borrower has frozen their account with one of the credit repositories. No data from that repository was used in underwriting the loan case file. The lender remains responsible for preventing fraud, which includes, but is not limited to, ensuring the borrower's identity has been verified. In addition, the lender must continue to investigate any liabilities or derogatory credit that is disclosed by the borrower but not reflected on the credit report."
Prior to this change, DU would give an error message that the Credit has been frozen and the Borrower would need to un-freeze the Credit before resubmission to DU for underwriting.
Note: Freddie Mac and the GSEs HAVE NOT made this change and STILL REQUIRE that the Borrower unfreeze the credit and that the AUS be re-run.
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Copyright © 2017 Skyline Financial Corp. dba NewLeaf Wholesale, Nationwide Mortgage Licensing System (NMLS) Company ID# 12072. Arizona Mortgage Banker License #927740, Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act File No: 4130296, Colorado Registered with Colorado Division of Real Estate, Florida Mortgage Lender/Servicer License No. MLD947 issued by the Florida Office of Financial Regulation, Georgia Mortgage Lender License #42980, Hawaii Licensed by the Hawaii Division of Financial Institutions No. HI-12072, Idaho Licensed by the Idaho Department of Finance MBL-7422, Illinois Residential Mortgage License # MB.6761108, Louisiana Residential Mortgage Lending License, Nebraska Mortgage Bank License, New Jersey Residential Mortgage Lender License, New Mexico Financial Institutions Division, Registered Mortgage Company License # 01653, Oregon Mortgage Lender License ML-2797, South Carolina Mortgage Lender / Servicer License MLS #12072, Tennessee Mortgage License #108815, Texas Registered with Texas Department of Savings and Mortgage Lending, Utah Licensed by the Division of Real Estate License # 5318719, Virginia Lender License MC-5861, Washington Consumer Loan Company License CL-12072. This is a business to business communication intended for Real Estate and Lending Professionals only.
Refer to
www.nmlsconsumer.org and input NMLS#12072 to see where Skyline Financial Corp. is a licensed lender.
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