DU Validation Service
The DU Validation Service is a feature of Fannie Mae's Desktop Underwriter (DU) system that provides Day 1 Certainty™. This service leverages automation, analytics, and third-party data to validate key borrower information.
How it Works
The service integrates with external data sources to verify:
- Income
- Employment
- Asset data
By validating this information through third-party data, the DU Validation Service aims to enhance the reliability of the underwriting process and reduce the need for traditional paper documentation for the validated components.
Benefits for Lenders
A primary benefit for lenders using the DU Validation Service is the potential relief from certain representations and warranties related to the validated data. This can streamline the loan origination process and reduce post-closing risks.
MLO Responsibilities
Despite the automation and validation provided by the service, MLOs and lenders remain responsible for:
- Identifying all liabilities that could affect the borrower's ability to pay.
- Ensuring the overall accuracy and completeness of the loan application and supporting documentation.
- Exercising Prudent Underwriting Judgment in conjunction with the automated recommendations.
Source material
- research clarify the specific roles features and regulatory 2026 05 18
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