FNMA & Authorized Users

Today is the first business day that FNMA DU Version 7.0 went into effect.  Here’s how FNMA is treating Authorized User accounts. 

“As stated in Announcement 08-08, DU Version 7.0 will not take into consideration credit report tradelines in which the applicant has been designated as an “authorized user.”  If the mortgage loan falls into the instance stated in Announcement 08-08 where the lender has information available that an applicant is an authorized user on a spouse’s credit report tradeline, and that spouse is not an applicant in the mortgage transaction, the lender must manually underwrite the mortgage loan in order to ensure such “authorized user” tradelines are taken into consideration in its underwriting decision.”

Desktop Originator/Desktop Underwriter Release Notes, Version 7.0