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61 December 2025 J O U R N A L themortgagepoint.com December 2025 » The letter also calls for changes to the rules regulating the FHLBanks' Affordable Housing Program (AHP) and cites a comment letter from August 2024 that offers detailed suggestions for increasing the use of AHP funds to meet urgent housing needs. "Director Pulte has proposed a strategic plan that charts a bold path to sustain the FHLBank System's long-term stability and impact," said Ryan Donovan, President and CEO of the Council of Federal Home Loan Banks. "We will be a constructive partner to ensure the FHL- Banks keep delivering reliable liquidity in a safe and sound manner to help keep mortgage credit affordable." Additionally, the Council reiterated the FHLBanks' pledge to work with FHFA to improve the Affordable Hous- ing Program and use both mandated and voluntary programs to increase the supply and affordability of housing in each of the 11 FHLBank districts. FANNIE MAE REMOVES FICO FLOOR FOR DESKTOP UNDERWRITER F annie Mae is eliminating its 620-credit-score floor for loans using its Desktop Underwriter [PB1] system, the GSE announced. The latest DU Version 12.0 release notes and Selling Guide update include the change, which would enable more mortgages to be processed through the DU system, though Federal Housing Finance Agency Director Bill Pulte said the change is only a small one in a post on X. "Our underwriting standards are the same," Pulte said. "As a process matter, to ensure two scores can be used and not just one, we eliminated requirement for FICO in the infamous 'guide.' Big deal for consumers. Small or nothing deal for underwriting." In eliminating its dependence on the credit score, DU will now instead con- sider other credit risk factors, including a borrower's credit history, income, debt levels, property characteristics, and loan purpose. "The DU risk assessment reflects a comprehensive evaluation of credit risk factors from the borrower's credit report along with non-credit risk factors from the loan application," Fannie Mae said in its release notes. "Lenders must continue to meet all post-closing qual- ity control requirements to verify the accuracy and integrity of the informa- tion used to support the underwriting decision. This includes ensuring all data submitted to DU is true, correct, and complete, and conducting a reverifica- tion of credit history." Additionally, the Selling Guide has been updated to include terms of enforcement relief of representations and warranties related to undisclosed non-mortgage debt for certain loans underwritten through DU. Mortgage-re- lated debt (including HELOCs and second liens) is excluded from eligibility for relief. When a final DU submission re- ceives an Approve/Eligible recommen- dation and a DU message indicating that the loan has obtained relief from enforcement of representations and warranties for undisclosed non-mort- gage liabilities, Fannie Mae will not enforce representations and warranties related to non-mortgage debt obtained by the borrower(s) before or concurrent with the day of closing. "We will be a constructive partner to ensure the FHLBanks keep delivering reliable liquidity in a safe and sound manner to help keep mortgage credit affordable." —Ryan Donovan, President and CEO, Council of Federal Home Loan Banks