Is the FNMA excel underwriting model the same across all DUS shops?
New analyst and curious if everyone has the same underwriting spreadsheet or if it differs across DUS shops.
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Ah, the mysteries of the underwriting spreadsheets! Based on the most helpful WSO content, it's common for different DUS (Designated Underwriting and Servicing) lenders to have variations in their FNMA (Fannie Mae) underwriting models. While there may be a standard set of criteria that all DUS shops must adhere to when underwriting loans for Fannie Mae, each shop might have its own proprietary model that includes unique adjustments or assumptions.
Here's a bit more detail for you:
Standardization: Fannie Mae provides guidelines and criteria for underwriting, which creates a level of standardization across different DUS shops.
Customization: Despite the standard guidelines, each DUS shop may customize its model to reflect its own risk appetite, market focus, or operational style.
Proprietary Elements: Some shops might include additional metrics or have a different interface, making their model unique compared to others.
As a new analyst, you'll find that while the core elements of underwriting might be similar, the devil is in the details, and those details can vary from one shop to another. It's like having a recipe for chocolate chip cookies – everyone starts with the same basic ingredients, but some bakers add a pinch of salt or a dash of vanilla, making each batch deliciously unique!
Sources: FHA/FNMA/FHLMC Underwriter, If 100 of us built a model, would any two be the same?, How do top credit shops compare to MM/LMM buyout?, Are the people at Ducera/Moelis/sweatshops beta males?, Transfer from UVA (Pre-commerce + Echols) to GTown, Vandy, ND (Econ), Brown, WashU (Olin), Cornell (Econ), Chicago or stay?
It'll differ slightly shop by shop as Fannie is going to try pushing the Lenders towards using their DMS to Gateway as a AI connection. So theoretically all will have the same fields. Most DCU and CU's come from a range of shops with 5-10 year stints at each one so they all have taken the UW's with them so I'd say there is variation but doubt it is significant.
Just curious. Do you know if you submit a FNMA (or Freddie) application with one DUS lender, does that restrict you from submitting an application with another DUS lender for some period of time? How does that work?
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