Loan Originators use both DU and LPA automated underwriting programs.
What is DU and LPA, you might ask?
DU is Desktop Underwriter and is Fannie Mae’s underwriting software. LPA is Loan Product Advisor and is Freddie Mac’s underwriting software; most conforming loans are run through one of these software programs. These programs dictate details such as the documents to be requested by lenders, whether the property qualifies for an appraisal waiver, and whether a condominium will need a full or limited review. Underwriters condition loans to their findings in order to make the loans saleable to either Fannie Mae or Freddie Mac. In essence, if one of these programs approves you for a loan, then it is likely you will get that loan.
We are a mortgage broker and work with lenders who underwrite to either DU or LPA. So, if we cannot get a loan approved with DU, then we will try to get it approved with LPA, and vice versa. Some banks only work with one. For example, if the lender sells its loans to Freddie Mac, it will run the scenario in LPA. If LPA cannot approve it, then the lender will deny the loan.
Once again, there are more options available to you when working with a broker. Contact us and we can help you get your loan approved through DU or LPA.
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