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What does DU Refi Mean?

  • May 20 2009 - Tucson
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Answers (4)

I am assuming you are talking about DU Refi Plus.

DU Refi as stated before is just a refinance that is analyzed by Fannie Mae's computer (Desktop) Underwriting system.  You provide the conditions required by the system (and lender conditions) and the loan proceeds to closing.

A DU Refi Plus refers to this same system of loan closing but with the added new government guidelines used to streamline Fannie Mae loans.
  • May 20 2009
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I think you wanted more. Recently, that terminology is used to describe one of the ways, to access the new loan products, that fall under the administrations efforts to help struggling, and not so struggling homeowners. Fannie Mae has a system, called DU, for underwriting normal conforming loans, in normal times, whatever those are. The two new products Fannie Mae created, at the behest of the President, can either be run through this system, or not. If you can pass, through DU underwriting, you are probably not so struggling, and the truly struggling have to be underwritten by a human UW, on the non DU Gov't suggested refi product.

Some lenders have chosen to only refi the not so struggling owners, who the DU system approves, an not even bother to look at the non DU files.

Somebody with more expertise, and time than I have, will have to tell you why, you might not pass through DU, and still be eligible with manual UW,or vice versa.

I have only had personal experience with Freddie Mac, and they don't want any of their Gov't suggested refi loans run through their underwriting system, known as LP.

I think, if you run LP, and it is not accepted, you have shot your foot. You can not access new products, even if you may be eligible, simply because FM's system, now knows, that you are struggling. In other words, Freddie wants to reset all it's loans, that Lenders decide are worthy, without a new opinion from the computer expert system that is LP. Interesting. Possibly inaccurate, I am no expert, just a practioner.
  • May 20 2009
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Desktop Underwriter. It's used in replace or an addition of a human underwriter to qualify for a mortgage loan. DU can decline your file and once it's declined, it will appear on a national database for every underwriter will see. 
  • May 20 2009
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Profile picture for richarreguin
DU stand for Destop Underwriter a Fannie Mae product used by mortgage professionals to determine a person eligibilty for a mortgage loan.
Refi refers to refinancing a home loan.
  • May 20 2009
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