What Is Automated Underwriting?
Automated Underwriting: Software from Fannie Mae, Freddie Mac and FHA that evaluates a loan file and sets its requirements.
Also called: AUS, Desktop Underwriter, DU, Loan Product Advisor, LPA
Automated underwriting systems (AUS) analyze your credit, income, assets and the loan to give a recommendation and a list of required documents.
The main systems
- Desktop Underwriter (DU): Fannie Mae, also used for many FHA and VA loans
- Loan Product Advisor (LPA): Freddie Mac
- FHA TOTAL Scorecard: runs through DU or LPA for FHA loans
- GUS: USDA's Guaranteed Underwriting System
Findings
The system returns a result such as "Approve/Eligible" or "Refer," plus conditions: which documents to collect, maximum ratios, reserve requirements, and sometimes an appraisal waiver.
Good to know
An automated approval isn't final. A human underwriter still checks that the documents match what was entered. A "Refer" result may still be approved with manual underwriting.