Loan originators need to know when to use these codes and where to insert them in the Fannie Mae xml loan application when needed.
Entries noted below should be inputted EXACTLY AS SHOWN, with spaces (no underscores), and are case sensitive! Entry information shown for the five codes can be found in the Fannie Mae Selling Guide under B3-5.3-09, DU Credit Report Analysis (12/04/2019). Freddie Mac does not have a workaround code for these issues.
Mortgage Delinquency Information
For placement details, see Fannie Mae’s Desktop Underwriter job aid on derogatory credit fields.
In your xml loan application on the Fannie Mae website, insert code in “5b. About Your Finances” under DU Policy Feature. If more than one code is needed, click on +Add Description to open additional field. Input EXACTLY as code is shown with spaces and is case sensitive! Then click Done.
[1] B3-5.3-08, Extenuating Circumstances for Derogatory Credit (12/16/2014), Fannie Mae Selling Guide.