21-71: DU Release Notes Version 11.0 September Update – Credit Score Eligibility and Rent Payment History


Credit Score Eligibility in DU

PennyMac is working toward aligning with the Fannie Mae Credit Score change at a future date. An announcement will be issued once an implementation date has been determined.

As background, Fannie Mae currently requires all borrowers to have a minimum of a 620 credit score.

Effective with casefiles submitted or resubmitted on or after September 18th, for loan casefiles with more than one borrower, DU will now use an average median credit score when determining if a loan casefile meets the minimum credit score requirement of 620.

PennyMac will temporarily continue to require a minimum 620 credit score for each borrower and as a result, any loan not meeting PennyMac’s minimum credit score requirements will not be eligible for purchase regardless of a DU Approve/Eligible finding.

Positive Rent Payment History Added to DU Risk Assessment

Effective with casefiles submitted or resubmitted on or after the weekend of September 18, 2021, Fannie Mae’s DU will provide a new feature to consider a first-time home buyer’s positive rent payment history in the credit risk assessment. To be eligible, a borrower must:

  • Be a first-time home buyer purchasing a principal residence
  • Have a credit score of at least 620 (nontraditional credit is not permitted)
  • Have been renting for at least 12 months
  • Have rent payments of $300 or more per month
  • Have bank accounts that document the most recent 12 months of recurring rent payments

A 12-month verification of assets (VOA) report i.e., bank statement data must be ordered from an authorized report provider during the application process.

Please contact your Sales Representative with any questions.