Today was the first day’s use of the new software for underwriting Fannie Mae loans. Version 7 of the Desktop Underwriting® software was upgraded with lenders over the past weekend.This new version of the underwriting process will take a much longer and more conservative look at borrowers. By longer, I mean that additional documentation will be required in order to get an approval. Fewer approvals will be given as well. The bar has been raised as to what makes for an approvable loan.The entire underwriting process for mortgage loans has snapped back into the days prior to any credit scores being used. In those days, a human being reviewed the loan application for the lender. At times, even two humans beings did the underwriting; once for the lender and again for the mortgage insurance company. Those were the days when, as a loan officer, you hoped your underwriter was having a “good” day and wouldn’t hit you with a page long list of conditions for a full loan approval.This new version of the software is crankier than previous versions. It demands more proof of what is stated in the actual loan application. The loan officer will need to be more careful that information is entered correctly onto the application. This software won’t allow the loan officer to change the information repeatedly based on what one thinks the lender wants to hear. This will prevent a lot of the fraud that has caused some of the problems we are living with today.This newer, more conservative software will look at the borrower’s with a much more critical eye. More will have to be proven. Risks in the file will have to be balanced with additional compensating factors.  As an example, fewer years in a line of work could be balanced with having substantial savings or reserves.This new software will mean there will be fewer loan approvals. It also means that the bar for loan officers has also been raised. The average loan officer has less than five years of experience. Many of the “newbies” have left the profession.  I recommend that you “prequalify” your loan officer at the time he or she prequalifies you. Ask how long they have been in business and ask if they are aware of the new underwriting standards.Doing this will make for an easier loan process during some challenging times