A software developed by Fannie Mae and Freddie Mac that is used to pre-approve borrowers for mortgage loans.
An automated underwriting system, or AUS, is a software developed by FNMA (Fannie Mae) and FHLMC (Freddie Mac) that is used to pre-approve borrowers for mortgage loans. Lenders utilize this software to pre-underwrite a buyer’s financial profiles and help determine their qualification before they’ve entered into contract on a specific property (which will require an underwriter’s manual review).
FNMA uses DO (Desktop Originator) and DU (Desktop Underwriter), FHLMC uses LP (Loan Prospector). For FHA or VA loans, either is acceptable. FNMA and FHLMC yield similar results and qualifying parameters, while the Algorithms for FHA/VA loans are more lenient.