Reading Desktop Underwriter Findings in 2026: What Every MLO Needs to Know

DU findings are the first stop for every conventional loan. Knowing how to read them accurately, understanding what each message requires, and knowing how to restructure a file when DU issues a refer is what separates high-volume originators from the rest.

DU Finding Categories

• ✦Approve/Eligible: loan meets Fannie underwriting standards; lender can process as a DU-approved conventional loan
• ✦Approve/Ineligible: credit meets approval criteria but some other parameter makes the loan ineligible for Fannie delivery (property type, loan purpose, or other program constraint)
• ✦Refer/Eligible: does not meet automated approval standards; eligible for Fannie but must be manually underwritten
• ✦Refer/Ineligible: does not meet credit standards AND has an eligibility issue; manual underwriting will not solve the ineligibility
• ✦Out of Scope: loan characteristics fall outside DU coverage (HELOC, reverse mortgage, construction permanent)

Reading the Messages Section

Every DU finding includes a messages section; read all of it. Required messages must be resolved before closing through documentation or conditions. Informational messages require no action but signal something for the underwriter to monitor. Risk factor messages tell you why DU approved or referred the file; understanding the risk factors is the first step to restructuring a borderline deal.

Common Approve Conditions

Standard conditions on a DU Approve/Eligible include updated pay stubs and VOE, bank statements and VOD, title commitment, and appraisal. Condition language such as verify income from self-employment means Schedule C or business returns are required. Authorized user accounts condition means you need to evaluate whether the AUs are masking a thin file. Recent credit inquiry means a letter of explanation and confirmation that no new debt was incurred.

What Changes the Findings

Changing the loan amount, term, down payment, or qualifying income requires a new DU submission. Findings are tied to specific loan parameters; do not reuse findings when material changes are made. Every DU submission generates a case file number; lenders must retain all submissions in the loan file. Prior findings cannot be deleted from the record.