Automated Underwriting System (AUS)

Most large mortgage lenders use four basic steps to process a loan application.  First, data is gathered by the loan officer and entered into some type of loan application software. I use Calyx Point

The next step is the loan officer submits the information contained in the loan application to another software program called an Automated Underwriting System or AUS to determine if the information meets the minimal requirements for the type of loan. These requirements are called underwriting guidelines or just guidelines.

There are several AUS programs, some companies even create their own proprietary software.  I use Desktop Underwriter® (DU®) which is a Fannie Mae AUS.

If you really want to have your head spin around a couple of times, visit the link to DU® and check out some of the goodies in the Learning Center.  There would be a lot fewer loan officers in the land if they had to master that stuff first before being hired by a lender instead of the other way around.  

The third step is the loan officer hands off the application and the support documents provided by the borrower to a mortgage processor.  The processor checks the integrity of the data in the support documents against the application and independently verifies the basics. 

Then the processor stacks the application in the order required for review by an underwriter and hands off the application to an underwriter.

The underwriter uses the findings from the AUS to determine if the information in the loan application meets the minimum standards for the type of mortgage being sought.

Continue to the page with Borrower Information.