What does AUS mean in underwriting?
Automated Underwriting System
Automated Underwriting System (AUS) is the technology-driven underwriting process that generates an underwriting response regarding eligibility of the mortgage purchase in the secondary markets. Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Prospector are the commonly used automated underwriting systems.
What does AUS mean in mortgage terms?
Automated underwriting
Automated underwriting is a technology-driven underwriting process that provides a computer generated loan decision. The lending industry is broadly migrating to the use of new technology-driven loan underwriting platforms to improve the processing time for all types of loans.
What is the AUS used by Fannie Mae?
Fannie Mae and Freddie Mac offer the two main automated underwriting systems used by most lenders: Fannie Mae’s Desktop Originator (DO)/Desktop Underwriter (DU) and Freddie Mac’s Loan Product Advisor (LPA).
What does AUS approve ineligible mean?
Approve/Ineligible means that that the risk of the loan is acceptable, but it is not eligible for delivery to Fannie Mae.
What is an Aus approval?
Automated underwriting (also known as AUS) is used by mortgage lenders to determine whether or not to approve your mortgage application. These automated, computer-generated mortgage loan underwriting decisions are the most common way to get approved for a home mortgage. Automatic Underwriting System.
Why am I getting Refer with caution?
If you get a “refer” response, a human underwriter must take a second look and perhaps underwrite your loan manually. “Refer with caution” usually means that the system declined your application. If you get an “approve” response, the system kicks out a list of conditions you must meet to finalize your approval.
Is Du Fannie or Freddie?
So remember, Desktop Underwriter (DU) is Fannie Mae’s automated underwriting system, and Loan Prospector is Freddie Mac’s.
What are AUS findings?
AUS findings are only as good as the information they are given. Automated underwriting systems are reviewing your credit, income, monthly debts, down payment, reserves, and many other factors to determine if you qualify for a home. Related: What Documents Are Needed to Purchase a Home.
How long after underwriting does a loan close?
Clear To Close: At Least 3 Days Once the underwriter has determined that your loan is fit for approval, you’ll be cleared to close. At this point, you’ll receive a Closing Disclosure.
Is Fannie A LP?
Fannie Mae uses the automated underwriting system called Desktop Underwriter or DU, while Freddie Mac uses the AUS called Loan Prospector or LP. Both of these systems do similar functions. They are the systems that lenders submit a home buyer’s information to for automatic approval.
Who uses Fannie Mae du automated underwriting?
Over 90% of all banks and mortgage lenders use Fannie Mae DU Automated Underwriting System as their AUS of choice in getting an automated underwriting system approval.
What does approve/eligible per aus mean?
approve/eligible per AUS: A/E per AUS means the borrower has an automated approval and the borrower meets all agency mortgage lending guidelines so the file can proceed refer/eligible per AUS means the borrower may be eligible but the automated underwriting system needs to refer the file to a human underwriter for underwriting
What is the difference between approve and refer with caution?
The layering and degree of risk factors that result in a Refer with Caution recommendation represent a greater risk of serious delinquency than for those loan casefiles that receive an Approve recommendation.
What happens if a loan is not approved by automated underwriting?
If it is not approved by the automated underwriting system, the chances are that it needs to be downgraded to a manual underwrite only if the AUS Findings render a refer/eligible per AUS finding. Not all mortgage lenders will do manual underwriting.