source:
  type: guide
  id: fnma-sel-b3-2-11
  authority: Fannie Mae Selling Guide B3-2-11 — DU Underwriting Findings Report
  description: Fannie Mae Selling Guide B3-2-11 — DU Underwriting Findings Report.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-2-11-full
  canonical_id: fnma-sel-b3-2-11-full
  section: Fannie Mae Selling Guide B3-2-11 — DU Underwriting Findings Report
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-2-11 — DU Underwriting Findings Report
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-2-11, DU Underwriting Findings Report (09/07/2022) Introduction
      This topic contains information on the DU Underwriting Findings report, including:
      Overview Potential Red Flag Messages Overview The DU Underwriting Findings report
      summarizes the overall underwriting recommendation and eligibility component
      of the loan caseﬁle and lists certain steps necessary for the lender to complete
      the processing of the loan ﬁle. Speciﬁc messages are provided for each individual
      loan caseﬁle. These detailed messages are designed to assist lenders in processing
      and closing loans. However, the level of documentation recommended by DU may
      Published May 6, 2026 299 not be adequate for every borrower and every situation.
      The DU Underwriting Findings report is divided into sections. Each section contains
      a diﬀerent type of message. Certain messages will be provided based on the DU
      credit risk assessment. For example, some messages are returned only on Approve
      recommendations, while other messages are returned only on Refer with Caution
      recommendations. Potential Red Flag Messages DU provides a number of “potential
      red ﬂag” messages designed to help the lender detect inconsistencies in the
      loan caseﬁle. Neither the presence nor absence of these messages alters the
      lender’s responsibility to ensure accurate information in all areas of the loan
      process or otherwise comply with applicable law, including the Fair Credit Reporting
      Act. Note: The appearance of these messages does not aﬀect the underwriting
      recommendation from DU. Rather, they are designed to help lenders detect inconsistencies.
      Furthermore, the absence of any of these messages does not indicate or imply
      Fannie Mae’s acceptance of the data submitted to DU. The following lists potential
      red ﬂag messages: Excessive resubmissions: A message alerts lenders when an
      unusually high number of loan resubmissions may be the result of data manipulation.
      Frozen credit report: A message alerts lenders when a borrower has frozen their
      account with one of the credit repositories. Potential caseﬁle ID reuse: A message
      alerts lenders when the subject property address, Doc File ID, occupancy, or
      loan purpose have been modiﬁed. The message serves as a reminder that the DU
      loan caseﬁle ID is unique to an individual loan and the same caseﬁle ID may
      not be used to underwrite more than one loan in DU. More information can be
      found in the Desktop Underwriter Potential Red Flags Messages matrix. Recent
      Related Announcements The table below provides references to recently issued
      Announcements that are related to this topic. Announcements Issue Date Announcement
      SEL-2022-08 September 07, 2022 Chapter B3-3, Income Assessment Introduction
      Published May 6, 2026 300 This chapter describes the requirements for evaluating
      income stability, adequacy, and likelihood of continuance — key factors used
      in qualifying the borrower and assessing their capacity to repay the mortgage
      over the life of the loan. Section B3-3.1, General Income Requirements'
  judgment: false
