Fannie Mae announced innovative enhancements to its automated underwriting system designed to responsibly expand eligibility and further simplify the borrowing process for loans where homebuyers do not have a credit score. These enhancements will help historically underserved borrowers access credit and further support the company's commitment to serving renters and homeowners in an equitable and sustainable way. Starting mid-December 2022, another wave of enhancements in Desktop Underwriter® (DU®), Fannie Mae's automated underwriting system, will deliver new benefits to borrowers with no credit score and the lenders who serve them.

The new enhancements will: Update the eligibility criteria for loans where no borrower has a credit score to align with Fannie Mae's standard Selling Guide requirements, which may help more borrowers qualify for a home loan; Enable an evaluation of a borrower's monthly cash flow over a 12-month period to potentially enhance their credit risk assessment; Simplify the mortgage process by automating the current Selling Guide policy requirement to document nontraditional sources of credit. These enhancements are the next step in Fannie Mae's journey to drive positive change and create a more inclusive and equitable homebuying process.