Finance
A Virginia borrower's lender uses an 'automated underwriting system' (AUS). This system:
AReplaces the need for any human review
BUses algorithms to evaluate creditworthiness and provide preliminary approval recommendations✓ Correct
COnly applies to FHA loans
DIs optional and not used in Virginia
Explanation
AUS systems like Fannie Mae's Desktop Underwriter (DU) or Freddie Mac's Loan Product Advisor (LPA) automatically analyze applicant data and provide preliminary approve/refer decisions. Underwriters still review the final decision.
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