[Loan Doctor]

Consideration of Authorized User Accounts
This is from the Fannie Mae update effective 31 May 08. FHA loans are not effected by this at this time. Freddie Mac has not made a similar determination yet.

"As stated in Announcement 08-08, DU Version 7.0 will not take into consideration credit report trade-lines in which the applicant has been designated as an “authorized user.” If the mortgage loan falls into the instance stated in Announcement 08-08 where the lender has information available that an applicant is an authorized user on a spouse’s credit report trade-line, and that spouse is not an applicant in the mortgage transaction, the lender must manually underwrite the mortgage loan in order to ensure such “authorized user” trade-lines are taken into consideration in its underwriting decision."

What this means is that the credit scores with the AU will still help, but if the borrower does not have the minimum number of trade-lines that are old enough, then the loan will not be approved for sale to Fannie Mae.

Charles