Key Takeaways
- DU comes from Fannie Mae while LP comes from Freddie Mac.
- Both systems analyze the same information but may give different recommendations.
- Lenders can approve loans even with cautionary automated findings.
What's the difference between DU and LP findings?
You're wondering what DU and LP automated underwriting findings mean and how they differ. These are the two main automated systems lenders use to evaluate mortgage applications—DU comes from Fannie Mae and LP from Freddie Mac.
Both systems analyze your credit, income, assets, and debt to generate a recommendation for the lender. DU findings typically show as "Approve/Eligible," "Refer with Caution," or "Refer." LP findings appear as "Accept," "Caution," or "Ineligible." The systems use different algorithms and may weigh factors differently, so you could get different results from each one.
Check your loan application documents or ask your lender which system they used and what finding you received. The finding determines what documentation the lender needs and how they'll process your application. Some lenders run applications through both systems to see which gives a better result.
If you received a "Refer" or "Caution" finding, the lender can still approve your loan—automated underwriting isn't the final decision. Share your findings with your lender and they can walk you through what documentation you'll need and the next steps in your approval process.
