What underwriting system does Fannie Mae use?

Fannie Mae utilizes Desktop Underwriter (DU) as its primary underwriting system. DU is a computerized underwriting system that automates the assessment of mortgage applications, which helps lenders make more efficient and consistent decisions regarding borrower eligibility and credit risk.

The system evaluates numerous factors such as credit history, debt-to-income ratios, and other financial aspects to provide a recommendation for loan eligibility. This technology aids lenders by streamlining the mortgage approval process, ensuring compliance with Fannie Mae’s guidelines, and improving the speed and accuracy of underwriting decisions.

In contrast, Loan Prospector (LP) is an underwriting system used by Freddie Mac, not Fannie Mae. Similarly, Risk Assessment Tool (RAT) and Appraisal Gateway (AG) are not the designated systems for Fannie Mae's underwriting process. RAT focuses more on assessing borrower risk for broader applications, while AG pertains to managing appraisal information. Thus, among the options provided, Desktop Underwriter is the correct choice as it directly aligns with Fannie Mae’s procedures and practices in mortgage underwriting.