Desktop Underwriter® (DU®) Version 12.0 November Update: What You Need to Know
Fannie Mae is set to implement an important update to Desktop Underwriter® (DU®) Version 12.0 during the weekend of November 15, 2025. This update introduces several key changes that will impact loan casefiles submitted or resubmitted to DU on or after this date. Here’s a breakdown of the key updates included in this release:
1. Eligibility Assessment Update
The eligibility assessment process in DU will undergo significant revisions to better align with Fannie Mae’s credit risk standards. The following changes have been made:
-
Minimum Credit Score Requirements (Updated November 5, 2025)
The minimum credit score requirements previously applied to loan casefiles—such as the 620 minimum for one borrower or the 620 average median score for multiple borrowers—will be removed for casefiles created on or after November 16, 2025. This change will replace the credit score requirements with a more comprehensive evaluation based on DU’s updated risk assessment framework. The factors for this assessment are detailed in Section B3-2-03 of the Selling Guide. -
Removal of Credit Score for Multiple Financed Properties
The 720 minimum credit score requirement for borrowers financing a second home or investment property with multiple financed properties (seven to ten properties) will also be removed. For new casefiles submitted or resubmitted after November 15, 2025, DU will only reference the representative credit score. -
Message Updates
As part of this update, DU will no longer use both representative and average median credit scores. Instead, a new message will be issued that only references the representative credit score. Furthermore, if credit scores are not ordered from the permitted credit score versions outlined in Section B3-5.1-01 of the Selling Guide, DU will issue a reminder message to lenders to ensure they are using the correct score versions.
2. Documentation Updates for Borrowers without Traditional Credit
For borrowers without credit scores, the documentation requirements related to nontraditional credit and homebuyer education will be updated. These requirements will now only apply to loan casefiles for borrowers without at least one credit account or installment account reported on their credit report. DU will issue notifications when these additional documentation and education requirements must be met.
3. Undisclosed Liabilities (New Feature)
DU will now issue a new message related to undisclosed liabilities for loans that have received representation and warranty relief for non-mortgage undisclosed liabilities. This new message will appear on Approve/Eligible loan casefiles when certain criteria are met, informing lenders that the loan is eligible for representation and warranty relief. It will also remind lenders to resubmit the loan if any updated income or liability information exceeds DU’s resubmission tolerances.
4. Rural High-Needs Areas (Added November 5, 2025)
Fannie Mae, in collaboration with the U.S. Federal Housing Finance Agency (FHFA), designates certain areas as rural high-needs. DU will now apply the 2025 rural high-needs designations to all new loan casefiles created on or after November 16, 2025. These designations help determine eligibility for various programs, including the rural high-needs value acceptance offer, Duty to Serve messaging, and Mission Index information.
5. Updates to Align with the Selling Guide
Several updates will be made to better align DU with the Selling Guide and the latest industry standards, including:
-
Appraisal Messages Update
Appraisal messages in DU will be updated to reflect the changes in the Uniform Appraisal Dataset (UAD) 3.6 and the redesign of appraisal forms. References to specific form numbers will be adjusted to reflect eligibility for the Uniform Residential Appraisal Report. -
MH Advantage® Program
As per Selling Guide Announcement SEL-2025-07, single-width homes will now be eligible under the MH Advantage® program. DU will be updated to accommodate this change. -
Miscellaneous Message Text Updates
A number of minor message text changes will be made to ensure clarity and consistency with the Selling Guide.
For More Information
Lenders and mortgage brokers should consult their respective contacts for more detailed information. Lenders can reach out to their Single-Family Market Engagement Team, while mortgage brokers should contact their DO sponsoring wholesale lender. Additionally, an Integration Impact Memo will be posted on the Technology Integration page for technology-related updates.
These changes are part of Fannie Mae’s ongoing efforts to refine and improve the DU system, ensuring more accurate and efficient loan assessments. Stay informed about these updates to ensure your compliance and continued success with DU.
Source: singlefamily.fanniemae.com
#humanitiesinrealestate