How should a borrower’s credit history be evaluated?
For DU Refi Plus, DU performs its standard credit risk assessment for DU Refi Plus loans, which includes a comprehensive review of the borrower’s credit history. Fannie Mae’s standard minimum credit score requirement is waived, however. Lenders will receive the limited waiver of representations and warranties for eligible DU loan casefiles, provided the lender has complied with all other requirements as documented in the Selling Guide (Limited Waiver of Contractual Warranties for Mortgages Submitted to DU section). For Refi Plus (manual underwriting), the lender should rely on the payment history requirements of the existing mortgage and Fannie Mae’s standard guidelines and timeframes for past bankruptcy and foreclosure actions. Aside from these requirements, the lender will not be required to represent and warrant that the borrower has an acceptable credit history or be held accountable for undisclosed liabilities in connection with a Refi Plus loan. See also Question 11 for both DU R
