Changes in Analyzing Credit Behavior

Fundamental Shift in How Credit Reports Will be Analyzed

Very boring mortgage industry news that BOX Home Loan Employees should be aware of.  Consider this a warning that if you’re a human being, the following article may cause extreme drowsiness:

Analyzing Credit Behavior Continued:

Just wanted to make sure some of you are aware of a fundamental shift in how opens in a new windowFannie Mae and opens in a new windowDesktop Underwriter will analyze credit reports come the end of June.

Credit Plus is currently testing trended credit data within its platform to meet Fannie Mae requirements and expects the availability of trended credit data reports beginning April 1. Fannie Mae is currently incorporating trended credit data into its DU Version 10.0 and will be implementing it during the weekend of June 25, 2016. Trended credit data is a two-year historical perspective on a consumer’s utilization of credit accounts, giving lenders a means to better analyze borrower behavior and extract more meaningful statistics. Lenders will be able to determine if a borrower tends to pay off revolving credit lines each month or if they tend to carry a balance month-to-month while making minimum or other payments. In addition, seasonal and sudden changes in revolving credit behavior will be revealed.
The trended data will be included on virtually all active trade-lines, not just revolving accounts, and will include credit cards, opens in a new windowHome Equity Lines of Credit, student loans, car loans and mortgages. Credit Plus is partnering with opens in a new windowEquifax and opens in a new windowTransUnion to provide comprehensive trended credit data via highly customizable reports. Lenders will be able to choose from almost 100 attributes. While each of the three national credit bureaus currently offer trended credit data in some format, only TransUnion’s CreditVision and Equifax’s Dimensions trended credit data sets will be required by Fannie Mae in June 2016.

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  • transunion

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