The Update in Plain English
Fannie Mae’s Selling Guide Announcement SEL-2025-09 removes the long-standing minimum representative credit score of 620 for DU loan case files created on or after Nov. 16, 2025. The updated B3-5.1-01 language reads, “A minimum credit score is not required for DU loan casefiles. DU will assess a borrower’s creditworthiness in accordance with the risk factors outlined in B3-2-03, Risk Factors Evaluated by DU.” The DU and DUO Release Notes reinforce the same point and clarify that the hard floor will be replaced by a minimum credit risk standard that is embedded in DU’s overall risk assessment.
Built for Loan Officers Who Want to Win More Business
What is not changing? Lenders still request scores from the credit repositories. The Federal Housing Finance Agency has framed the move as a process and wording alignment, not a loosening of underwriting standards. The underlying risk management remains in place. The path to an Approve/Eligible just shifts from a bright line score to a fuller evaluation of the borrower’s total profile.
How DU will Look at Credit Without a Score Floor
The new center of gravity is holistic risk
- Payment history and depth of credit
- Credit utilization and recent behavior
- Income stability and debt-to-income ratio
- Reserves and verified assets
- Housing history and nontraditional credit where applicable
Credit scores still matter. They are part of the data. The difference is that DU will no longer return a quick decline just because a score is below 620. A borrower with a sub-620 score, clean recent pay history, reasonable utilization, strong income, and measurable reserves may now pass DU when the full picture is favorable.
What this Means for Originators and Lenders
Present a stronger file to DU
This change moves the job of the originator from “can we get the score to 620” toward “can we demonstrate overall creditworthiness” Practical steps:
- Document the compensating factors: Highlight verified reserves, stable income, and on-time payment history across tradelines
- Tighten DTI where possible: Structure the file with realistic ratios that hold up to DU analysis
- Mind recent inquiries and utilization: Advise clients to limit new credit pulls and to keep balances modest relative to limits
- Surface housing history: For thin files, on-time rent can be a positive signal
- Use clear borrower presentations: Communicate why a given scenario fits the risk profile DU favors
Train teams on the new review mindset
With the hard floor gone, consistency in packaging becomes more important. Establish checklists and visual workflows that guide every LO through the same steps. Update your sales enablement materials so the field teams present the change correctly. The message is not “any score is fine,” but rather “DU is relying on a full risk review.”
Refresh your marketing carefully
Borrowers near the old threshold may be newly eligible, which is a legitimate outreach angle. Balance that with clear expectations. Approval still depends on the total picture. Position the change as expanded access for well documented borrowers, not a guaranteed pass.
What this Means for Borrowers
Sub-620 borrowers may have a path
Borrowers with scores under 620 may now qualify through DU if other parts of the profile are strong. Key behaviors still matter:
- Keep payments on time across all tradelines
- Avoid new debt and multiple inquiries
- Reduce balances to improve utilization
- Build reserves where possible
- Gather complete documentation to support the case
Thin or limited credit history
For clients with short histories or nontraditional credit, the holistic approach can help. Positive rent history, consistent utilities, and other verifiable patterns can strengthen files that would have failed on score alone.
Strategy insights for leadership and the LO channel
Reframe your pipeline conversations
Pipeline logic that relied on a 620 cutoff will need an update. Create a near-miss queue for revisit under the new DU framework. Collaborate with referral partners who serve clients in the 580 to 619 band and re-open those conversations with a documented plan.
Track early data
- Approval rates by score band
- Pricing and LLPA patterns
- Average reserves and DTI for approved sub-620 files
- Early performance and QC flags
Use those insights to tighten pre-qualification guardrails and to focus your marketing on the borrower profiles that convert.
Frequently Asked Questions (FAQs) to Include on Your Borrower Page
Do I still need a credit score?
Yes. Lenders still request scores from the repositories. DU just will not decline you solely because the score falls below 620.
Does this mean underwriting standards are looser?
No. Regulators described the change as a process and wording alignment. DU’s risk standards still apply.
Where Mortgage Maker Fits
Mortgage Maker was built for the loan officer of 2025 . The platform gives you borrower-ready visuals, real time scenario toggles, dynamic comparisons, and white label reports that make complex risk concepts simple. In a world where the conversation shifts from a single score to a complete story, clarity is your advantage. Mortgage Maker helps deliver that clarity in minutes.
