In one sentence
The Delegated Underwriting and Servicing program through which approved lenders originate and service multifamily loans that Fannie Mae purchases.
The longer version
Under DUS, approved lenders underwrite to Fannie Mae's standards and share risk on loans Fannie buys, giving the agency scale and lenders delegated authority. It is a dominant channel for conventional multifamily.
DUS lenders carry loss-sharing, so their underwriting files and servicing records are held to a standard that assumes future scrutiny.
Common questions
- What is Fannie Mae DUS?
- Delegated Underwriting and Servicing, the program under which approved lenders underwrite, close and service multifamily loans that Fannie Mae purchases or guarantees.
- What does delegated mean in DUS?
- That approved lenders can underwrite and commit to loans within Fannie Mae's guidelines without prior approval of each loan, in exchange for sharing in the credit risk.
- What is loss sharing in the DUS program?
- The DUS lender shares a portion of any losses on the loans it originates, aligning its underwriting with Fannie Mae's interests.
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