The Difference between Desktop Underwriter (DU) and Loan Prospector (LP)

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The Difference between Desktop Underwriter (DU) and Loan Prospector (LP)

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Technological advancements have led to the evolution of the process of loan underwriting. Nowadays, complex automated systems are being used to determine the qualification criteria. Automated underwriting systems are used by lenders to make crucial decisions about when to lend money and when to refrain from doing so. These computer-generating loan decision makes use of the information uploaded from the mortgage loan application forms. Data like the credit history of the borrower is retrieved and a logic based lending decision is made instantaneously. In rare situations when there is a conflict it may be necessary for a traditional underwriter to take the ultimate lending decision. Some automated underwriting systems take manual inputs, such as, assets and income, which can be verified later

Types of Automated Underwriting Systems

There are three automated underwriting systems that are used by the lenders to make the lending decisions:

  • Government Underwriting System – GUS;
  • Loan Prospector – LP; and
  • Desktop Underwriter – DU

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