Nationwide Mortgage Licensing System (NMLS) Practice Exam

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Prepare for the Nationwide Mortgage Licensing System (NMLS) Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Ensure your success by getting thoroughly prepared!

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What is Fannie Mae's automated underwriting system called?

Fannie Mannie
Software Helper
Desktop Underwriter
Loan Prospector

The correct answer is: Desktop Underwriter

Fannie Mae's automated underwriting system is known as Desktop Underwriter. This system simplifies the mortgage approval process for lenders by allowing them to evaluate borrower eligibility for loans based on various criteria, including credit history, income verification, and debt-to-income ratios. Desktop Underwriter uses sophisticated algorithms to assess risk and provide a decision on the loan application, helping lenders make quick and efficient mortgage decisions. Other systems mentioned, while related to mortgage underwriting, do not specifically pertain to Fannie Mae’s automated process. For example, Loan Prospector is associated with Freddie Mac and is their counterpart for automated underwriting. The other two options, Fannie Mannie and Software Helper, do not exist as recognized systems by Fannie Mae or within the mortgage industry context, making them irrelevant in this scenario. Thus, recognizing Desktop Underwriter is essential for understanding Fannie Mae's role in streamlining the mortgage process through technology.