Origination ActivitiesQuestion 274 of 400
A borrower's DU findings return 'Refer/Eligible.' What does this typically mean for the file?
a.The loan is automatically approved with no review
b.The loan is denied and cannot proceed
c.The rate is automatically reduced
d.The file requires manual underwriting because the automated system did not issue an approve recommendation
Explanation
A 'Refer' recommendation means the automated system could not render an approval and the file must be manually underwritten by a person, who evaluates compensating factors. 'Eligible' indicates the loan meets program parameters. Refer is not an automatic approval or denial.
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