New Underwriter Tool Helps Boost Homeownership
Fannie Mae’s Desktop Underwriter uses data on rent payment history, cash flow and self-employment income to help lenders identify creditworthy borrowers.
CHICAGO — Thirty years ago, Fannie Mae created a mortgage underwriting system that allowed lenders a way to assess the risk of borrowers outside the confines of the standard risk assessment models. This system, called Desktop Underwriter, makes homeownership available to a wider network of buyers, many of whom would be left out of the equation otherwise. Those buyers include individuals with no credit or slim credit history and those who are self-employed.
Katrina Jones, Fannie Mae vice president of housing equity, strategy and impact, and Stacey Shifman, Fannie Mae senior director of single-family analytics and modeling, presented the new Desktop Underwriter updates to a group of nearly 200 real estate professionals in attendance at the Realtors® Legislative Meetings in Washington, D.C.
“We need to reimagine how we look at borrower eligibility,” she said, noting that the goal is to create a more complete financial picture of potential borrowers so that lenders can more easily qualify credit-worthy candidates in a manner that is safe and sound for all parties.
Research conducted by Fannie Mae determined that between 2023 and 2032, an estimated 16 million net new households will be created. NAR and its industry partners are committed to making more of those people homeowners.
The newest version of Desktop Underwriter homes hone in on the following borrower attributes to create a more complete credit profile for potential first-time homebuyers:
Positive rental payment reporting. This tool was launched in 2021 and upgraded at the beginning of 2025. It assesses 12 months of rental payment history. Shifman noted that this calculation is meant to be in favor of the borrower, meaning missed payments within that 12-month timeframe are not counted. The upgrades made in early 2025 identified double the number of potential borrowers who were credit worthy and ready for homeownership.
Cash flow assessment. For many would-be homeowners who lack credit or have limited credit, cash flow isn’t a problem. But cash flow isn’t reported to the credit bureaus, so it cannot be assessed in a traditional sense. Desktop Underwriter is equipped to take data from bank statements provided by the consumer to assess cash flow. It determines whether the ratio between incoming money and outgoing money is healthy. Shifman noted that this assessment has enabled mortgage financing for 7% of applications.
Income calculator. Introduced in 2023, this assessment is designed for those who are self-employed. Currently, self-employed individuals make up 10% of the U.S. workforce and 9% of Fannie Mae acquisitions. But in the future, experts project that these individuals will make up 50% of the workforce, Jones said. Tax return data is used to calculate the income for self-employed borrowers, which reduces the origination cycle and gets loans closed faster.
Freddie Mac offers a similar tool, Loan Product Advisor, that enables real estate professionals and clients to assess a loan's overall underwriting risk against Freddie Mac credit requirements. In conjunction with LPA, the Freddie Mac Income Calculator helps assess borrower income types, aiding potential homeowners in qualifying for a mortgage.
© 2025 National Association of Realtors® (NAR)