← LO Library

DU / AUS

Last updated: October 19, 2026
 

CURRENT RULE

DU 12.1 is live (Sep 25, 2026). Changes that hit your files: DU flags likely occupancy issues before an occupancy fraud finding; new validation message on appraisal review items; job-specific verification is now explicitly acceptable (name, title, phone number, and phone extension or email for a person at the employer who can verify); DU’s minimum-credit check drops files to ineligible when it finds no borrower with a credit score (no more Caution referral). Fannie SEL-2026-09: verbal VOE flexibility. The verbal verification of employment now has relaxed timing and method requirements — confirm the lender’s exact window before scheduling it.

DU 12.1 Nov/Dec changes (release notes posted Oct 14, 2026):

  • Nov 14 — job rule: salaried borrowers employed by a family member, the seller, the agent, or another party to the transaction need 12 months at that same job (was 3 months current job + 12 months total history). Applies to DU casefiles first created on/after Nov 14.
  • Nov 13 — occupancy flag gets sharper: DU also reviews rental-management history. If it fires, the lender must document how occupancy was verified or the loan becomes investment.
  • Nov 30 — older “enhanced” DU Findings HTML/PDF versions retire.
  • Dec 2 — verbal VOE required for Schedule K-1 income with less than 25% ownership (SEL-2026-09), applications dated on/after Dec 2; no VOE if rental income is the only K-1 income.
  • Dec 11 — DU messages align with the October Selling Guide changes (looser verbal VOE methods; income continuance measured from application date).

DON’T MESS UP

  • The occupancy flag is a warning, not an approval. Document occupancy clearly and don’t guess on the application.
  • Starting Nov 14, a salaried borrower employed by family, the seller, the agent, or another party to the transaction needs 12 months at that same job — flag these files now.
  • If the occupancy flag fires, document how you verified occupancy or the loan converts to investment.
  • On job verification, a named person with a direct line or email beats a generic HR number.
  • A no-score borrower now means ineligible, not a Caution. Set expectations with borrowers who have no usable credit.
  • Don’t assume the old verbal-VOE window. SEL-2026-09 relaxed it — confirm timing with the lender on every file.

OFFICIAL SOURCES

DU 12.1 release notes (Sep 25, 2026)
DU 12.1 release notes — Nov/Dec changes (posted Oct 14, 2026)

CHANGE HISTORY

  • Oct 19, 2026: DU 12.1 Nov/Dec changes (Nov 14 job rule — 12 months at the same job for salaried borrowers employed by a party to the transaction; Nov 13 occupancy flag enhancement; Nov 30 enhanced Findings retirement; Dec 2 K-1 verbal VOE per SEL-2026-09; Dec 11 message alignment with the October Selling Guide).
  • Oct 12, 2026: Fannie SEL-2026-09 adds verbal VOE flexibility (relaxed timing/method for the verbal verification of employment).

Part of the GTG LO Library. Confirm the current rule with your lender before quoting.