Setting up Underwriting Services

Loan applications submitted through a Consumer Direct website can be sent automatically to Fannie Mae's Desktop Underwriter (DU) service. When this feature is configured, the DU results for a loan application are quickly returned and saved to the eFolder in Encompass. Loan officers can then view the results as they review the loan application, saving a considerable amount of time in the loan process.

A Consumer Direct administrator configures the underwriting feature using the new Underwriting Settings section on the Loans Settings page.

Note: When DU is enabled, borrowers are not made aware of the underwriting service when they submit a loan from your site and underwriting results are not automatically sent to the borrower.

DU Requirements

For underwriting services to run successfully, the following are required:

1. The underwriting service must be enabled in Consumer Direct Administration. For instructions, see Enable the DU Service.
2. Specific fields are required to be filled out by the borrower on the Consumer Direct website. To make sure these fields are available to the borrower, see Show the Required Underwriting Fields on the Consumer Direct Website.
3. A valid credit report must be provided. Please note that an estimated credit score doesn't replace the credit report requirement. To set up the Order Credit service, see Order Credit Settings.
4. A loan program must be selected by the borrower on the Consumer Direct website. To display loan programs, the Encompass Product and Pricing Service (EPPS) must be enabled. To enable EPPS, see Encompass Product and Pricing Settings.

Enable the DU Service

1. In Consumer Direct Administration, click Site Management, and then click Loan Settings.
2. Click the Edit Loan Settings button.
3. In the Underwriting Settings section, select Yes to enable underwriting.
4. Complete the following required fields:
• DU Lender Institution ID - The ID assigned to your company by Fannie Mae to use when sending a loan to DU or when importing conditions from DU.
• DU User Name and DU Password - Your company’s user name and password for DU. If you have your own user name and password assigned by Fannie Mae, do not enter them here. Enter the user name and password that has been designated by your company as the credentials to be used for Consumer Direct website users.
• DU User Name and Password for selected credit vendor - User name and password DU will use to connect with the credit vendor specified in Order Credit settings. Fannie Mae uses these credentials to retrieve the credit reference number so that DU can access the previously generated credit report.
• Import DU Conditions - Select one of the following options:

  - Preliminary to import DU conditions to the Encompass eFolder's Preliminary Conditions tab.

  - Underwriting to import DU conditions to the eFolder's Underwriting Conditions tab.

5. To submit FHA loans to DU, either the FHA Lender ID or the Sponsor ID and Sponsor Originator EIN must be provided. If you provide information for all of these fields, only the FHA Lender ID will be used.
6. Click Save.

Show the Required Underwriting Fields on the Consumer Direct Website

1. In Consumer Direct Administration, click Site Management, and then click Loan Settings.
2. Click the Edit Loan Settings button.
3. In the Field Settings section, select both Show and Required check boxes next to the Consumer Direct field names required for underwriting. The required fields and conditions are listed in the Consumer Direct Field Reference Guide.
4. Click Save.