Fannie CEO Hugh Frater described the change to DU as “one important step in correcting the housing inequities of the past,” adding that it will create a more inclusive mortgage credit evaluation process.

Digital verification of borrowers’ income, employment and assets can significantly reduce the length of the mortgage closing process. And the tech got a boost from the pandemic.

The new version of Fannie’s DU program will penalize student debt and income from auxiliary units but reduce the sting of self-employed income.

In 2019, Blend became the first digital lending platform approved for Freddie’s asset and income modeler.