Overview
- DU will replace the numeric cutoff with a minimum credit risk standard based on its internal assessment, while lenders must still request and retain borrower credit scores.
- The update applies to new loan casefiles created on or after Nov. 16, 2025, with related DU messaging changes active for files submitted or resubmitted starting the weekend of Nov. 15.
- Fannie Mae added DU notifications for documenting nontraditional credit and requiring homebuyer education when borrowers lack traditional credit histories.
- Additional DU changes include applying rural high‑needs designations and issuing Day 1 Certainty messages when representation‑and‑warranty relief for undisclosed non‑mortgage liabilities is met.
- FHFA said underwriting standards are not being relaxed, as lenders weigh potential access gains for thin‑file borrowers alongside questions about consistency, pricing, and securitization; separately, MGIC will accept middle FICO scores down to 600 starting Nov. 16.