Why is Fannie Mae waiving the standard 620 minimum representative credit score requirement for DU Refi Plus transactions?
For DU Refi Plus loans, Fannie Mae is waiving the 620 credit score minimum eligibility requirement because the refinance transaction is expected to put the borrower in a better position, we already have the risk on the loan, and DU’s comprehensive risk assessment evaluates whether the borrower has a reasonable ability to repay the mortgage loan. Q64. If a lender receives the DU Refi Plus message on a specific loan casefile submission, and on a subsequent submission the loan casefile is not underwritten as a DU Refi Plus, can the lender still deliver the loan under DU Refi Plus? No. A lender may only deliver the loan under DU Refi Plus if the DU Refi Plus message is issued on the final submission to DU. Q65. If a lender receives the DU Refi Plus message on a specific loan casefile submission, can the lender deliver the loan as a standard limited cash-out refinance without the DU Refi Plus special feature code (SFC)? If the lender does not want a specific loan casefile to be underwritten
