Real Estate Finance News

A Summary Of The Updates Include:

• DU will consider applications with a maximum DTI of 50%, and will no longer require compensating factors for DTIs above 45% and up to 50%.
• Timeshare Accounts: DU will treat timeshares as installment loans rather than mortgage debt.
• Student Loan Clarifications: Fannie Mae will permit the use of a $0 payment for student loans with appropriate documentation.
• Mortgages Paid by Others: The monthly mortgage payment may be excluded from the calculation of the DTI ratio if the party making the payments is obligated on the mortgage debt and can document the most recent 12-month payment history with no delinquencies.
• Disputed Tradelines: The new DU version will include updated risk assessment and messaging for borrowers with disputed tradelines.

These changes (DU 10.1 which was released in July 2017) will allow more people to qualify for larger loan amounts while it makes the process a little easier.