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Question:  What does a lender need to do before enabling a third party originator with access to Desktop Underwriter (DU)?

Answer: 

A lender may redistribute or enable access to Desktop Underwriter (DU) to its permitted third party originators (TPOs) as part of its standard DU license without prior approval of Fannie Mae.  However, prior to enabling such access, the lender must ensure it maintains a written agreement with the TPO in compliance with Fannie Mae’s Consolidated Technology Guide, Desktop Underwriter (DU) Schedule.  Further, the lender must make DU available through a secure website portal, which prevents unauthorized access.  Lenders must also include the unique NMLS ID assigned to each permitted TPO or subsidiary on all loan casefiles submitted to DU.

Fannie Mae requires a Seller/Servicer to maintain policies and procedures addressing DU redistribution requirements and for monitoring and maintaining the security and proper use of all authentication credentials (both issued to employees and to permitted TPOs and subsidiaries).  The policies and procedures should address how the Seller/Servicer:

• Provides support, training and oversight of permitted TPOs; 
• Takes immediate steps to disable authorized authentication credentials for authorized users that cease to be associated with the lender or no longer require such access; 
• Immediately notifies Fannie Mae of any loss, theft, or unauthorized disclosure or use of an authentication credential; 
• Periodically reviews and updates authorized users’ access rights; 
• Revokes or resets authentication credentials as required by Fannie Mae, but in no event less than every 90 days for individuals and annually for systems; 
• Ensures that authorized users are only performing actions on behalf of the Seller/Servicer.
  
  

As part of the annual Lender Record Information (Form 582), lenders must answer a question on whether they redistribute access to DU to any TPOs or subsidiaries.  If yes, Fannie Mae will require the lender to submit the names, contact information, and NMLS IDs for permitted TPOs and subsidiaries to Fannie Mae.  Fannie Mae maintains a Form 582 –Redistribution of DU Job Aid to assist lenders with completing Form 582.