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LP/DU analysis question

I came across the term LP/DU analysis and wanted a bit clarification. As a buyer, Is there an advantage to get an LP/DU analysis? With what types of mortgages is it best for? Does it make the loan approval and closing process smoother? Does it make me a more qualified buyer? A response would be greatly appreciated. Thank you in advance! by ttranscripts-2599 from Virginia Beach, Virginia. Sep 18th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

LP (loan prospector), and DU (desktop underwriter) are the automated underwriting systems (AUS) for Freddie Mac & Fannie Mae.. all conforming lending requires that the file be run though an AUS specific to the loan product your applying for... if the AUS denies you, then your file can be manually underwritten.. as a buyer, there is a benefit to having your file run through the AUS, however, because there's a charge to do so, most lenders will not run you through until you have provided your complete loan packet and all your supporting documentation.. Also understand that being approved through the AUS does not guarantee lender approval. It's just one of the steps.. FHA for example has no minimum credit score requirements.. and the guidelines are very loose.. most lenders will have their own set of guidelines called overlays, and it's these overlays that might cause your file to be denied even with AUS approval.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 18th 2013
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An LP or DU approval is the best way to prove to a seller that you are qualified. LP is Freddie Mac's automated underwriter and DU is Fannie's.Good luck,Fred Glick NMLS 133975U S Loans Mortgage, Inc2152389400

Sep 18th 2013
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NA NA (notapplicable)
#8 ranked lender in Virginia - 15 contributions

LP is the acronym for Loan Prospector (Freddie Mac) and DU is Desktop Underwriter (Fannie Mae). DU and LP are Fannie and Freddie's automated underwriting systems (aka AUS) and they are used for a majority of loans these days. In order for banks and mortgage companies to sell a conventional loan to Fannie and Freddie, they must run the file through an AUS. DU and LP are also used for government loans like FHA & VA. It does not provide loan approval, more like pre-qualification. AUS is run prior to underwriting a loan file. Hope that helps! Feel free to call or email me if you have any questions or would like help with your loan application. Jason Crigler, 434-975-5626, jason@crownmortgage.com. We are a Virginia based lender.

Sep 18th 2013
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Michael Zimmerman (MichaelZimmerman)
#62 ranked lender in Virginia - 36 contributions

For a local lender here in Virginia Beach, we have the ability to run both. Contact us at 757-518-0700 or www.SouthernTrust.com

Sep 18th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

Automated underwriting can speed up the process, and make it easier on you and the lender.

Sep 18th 2013
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Kiernan Brown (KiernanBrown)
#50 ranked lender in Michigan - 149 contributions

As you have read LP is for loans that are sold to Freddie Mac and DU is for loans that are sold to Fannie Mae. Depending on your situation you may be better qualified for one or the other. An approval on either of these systems is only as good as the information they use for the approval. The ease of process in underwriting approval and closing, will depend on the documentation provided and/or needed based on your situation. It is best for you to choose one of the qualified Lender 411 professionals that can originate in your are, and let them decide what information needs to be included and documented for your Mortgage Application.

Sep 19th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

The only point I want to add to the excellent info above is that if you are working with an experienced mortgage officer they likely will have already obtained this analysis - it is a standard part of any mortgage application or pre-approval request.

Sep 19th 2013
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 352 contributions

Unless you are working with a financial institution that does not sell the servicing rights or notes to wall street, then LP (Loan Prospector - Freddie Mac) / DU (Desktop Underwriter - Fannie Mae) approval will be a prerequisite in order for your lender to approve the loan for funding. Speak with your local mortgage banker about the subtle differences between the two automated underwriting systems.

Sep 19th 2013
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Fantastic commentary ! I loved the details , Does someone know where I could locate a template FannieMae Guide Underwriting DU version to type on ?

Mar 3rd 2016
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Hi , my partner pulled a fillable FannieMae Guide Underwriting DU copy here http://pdf.ac/5AicuX.

Mar 4th 2016
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