Trended Credit Data
In October of 2015, Fannie Mae publically announced their plan to require lenders to use Trended Credit Data when underwriting loans through Desktop Underwriter® beginning mid-2016.
Initially available through Equifax and TransUnion, this data is intended to provide an expanded, more granular view of your borrower’s payment behaviors to help support your lending decisions and offer more targeted marketing strategies.
Rather than seeing only the borrower’s payment activity at a single point in time, Trended Data will give insight into the longer term trends in a borrower’s payment behavior. Trends such as actual statement balances over time, and scheduled payment amount versus the actual payment received.
According to Fannie Mae, trended data has the potential to qualify an additional 26+ million previously “unscorable” consumers for mortgages, as well as provide better rates and terms for another 23 million. The graph shown here, provided by Fannie Mae, illustrates their projections.
TransUnion will provide the previous 30 months of the borrower’s trended data, 24 months for Equifax. Experian has indicated they intend to provide Trended Data at a later date, still to be determined.
Equifax and TransUnion have determined that upon implementation of Fannie Mae’s requirement for Trended Data, ALL mortgage credit files will contain Trended Data; not just for those files ordered through Desktop Underwriterr®.
As a Fannie Mae direct partner, Avantus began programming for this change in early 2015. We are pleased to provide this valuable new consumer data to our customers. In a dynamic and ever changing environment, our goal is to provide you with the superior products, robust technology, and exceptional service that help you maintain your competitive advantage.