The housing market in any region is likely to go through cycles in response to changing economic conditions. In the United States, programs for homeowners — including the Desktop Underwriter (DU) Refi Plus;trade; were created in an attempt to strengthen to the housing market following an economic recession. The DU Refi Plus™ program is meant to ease some of the burdens, including financial and regulatory burdens, that are tied to refinancing a mortgage loan. The program was started by a government-sponsored entity (GSE), which is a mortgage lender in the private sector that is subject to some government involvement.
Fannie Mae is the GSE behind the DU Refi Plus™ program. For this special financing to be issued, the mortgage held by a homeowner must have been underwritten by a lender using Fannie Mae's Desktop Underwriter;trade; system. Sometimes, mortgage loans change hands between lenders, and that does not disqualify a loan from being eligible for refinancing.
This special refinancing loan is appropriate for homeowners who are seeking a to refinance a mortgage loan to obtain better terms. The concept behind the DU Refi Plus™ initiative is to create greater cohesiveness in the financing process so that the steps are less cumbersome to borrowers. For instance, the amount of time required to complete a finance under the GSE program should be reduced in comparison with more traditional refinancing, and the regulatory framework that must be followed should be less stringent using DU Refi Plus™.
As a result of the GSE program, borrowers receive certain benefits that typically are not otherwise available. Under average conditions, borrowers typically need to prove a certain minimum credit score, which is a measure of credit worthiness, to qualify for refinancing a mortgage loan. DU Refi Plus™ is designed to overlook certain criteria tied to credit scores so that a greater number of homeowners can qualify.
Also, before any financial institution can approve a refinancing, an appraisal of the value of the home is performed. The GSE loan has the potential to waive the expense associated with that requirement. Required documentation associated with the GSE refinancing loan is not meant to be burdensome to lenders or borrowers and should be minimal. Qualifications for the DU Refi Plus™ loan are designed to be entreating, and the requirements surrounding proof of employment or previous federal tax payments favor the borrower. These refinancing loans might be suitable for individuals who own custom-made homes, condominiums and other types of residences.
