Fannie Mae Changes Underwriting to Help Expand Homeownership Opportunities for Underserved Borrowers

On December 7, Fannie Mae announced it will make enhancements to its automated underwriting system designed to expand mortgage loan eligibility and further simplify the loan process for prospective homebuyers without credit scores. According to Fannie Mae, millions of Americans are considered “credit invisible” with Blacks and Hispanics disproportionately impacted compared to White and Asian borrowers. Fannie Mae believes these imbalances have created racial disparities in access to homeownership opportunities. The latest enhancements align with the GSE’s efforts to help underserved borrowers gain greater access to credit and are expected to be rolled out by December 10.

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