When Fannie Mae purchases loans through its Desktop Underwriter (DU) system, what advantage does this provide to the originating lender?
Correct Answer
C) Pre-approval for loan sale before closing
DU provides automated underwriting decisions that, when loans receive an 'Approve' recommendation and meet Fannie Mae guidelines, essentially pre-approve the loan for sale to Fannie Mae. This gives lenders confidence they can sell the loan in the secondary market.
Why This Is the Correct Answer
DU provides automated underwriting decisions that, when loans receive an 'Approve' recommendation and meet Fannie Mae guidelines, essentially pre-approve the loan for sale to Fannie Mae. This gives lenders confidence they can sell the loan in the secondary market.
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