Pam Marron Home Lending

Fannie Mae Aug. 2014 “Fix”

The fix is in!

George Albright, past short seller who just closed on a new home, explains how fixes work! Click on picture above or go to


Fannie Mae “Fix” workaround (8/16/2014)

Note: Your lender must do this fix.

Loan professionals need to know specific directions on how to use the Fannie Mae DO/DU automated underwriting system (AUS) workaround when a Refer/Caution is received and the denial is due to a short sale coded as a foreclosure. IMPORTANT: You must be in Desktop Originator/Desktop Underwriter to make this fix! It will not work in your Loan operating system!

Loan originators, upon receiving Refer/Caution:

  • Within (1)Fannie Mae DO or DU automated underwriting system, go into (2)Edit Loan: then (3)Full 1003 and then (4)Declarations, then (5)c. In dropdown box, change to (6)Yes.
  •  Click on (7)Explanation button at bottom right.

fannie mae workaround 1A

On (8) Declarations Explanation page:

For(9), either:

  •  If strictly trying to correct a FORECLOSURE code noted on findings for a short sale, enter on line c.: Confirmed CR FC Incorrect


  • If “Extenuating Circumstances” and are trying to get DU/Fannie Mae approval at 2 years after short sale, enter on line c.: Confirmed CR FC EC

fannie mae workaround 2A