Credit Plus, a provider of insight for mortgage professionals, recently announced that it 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, 2016.
Fannie Mae is currently incorporating trended credit data into its Desktop Underwriter (DU) Version 10.0 and will be implementing it during the weekend of June 25, 2016.
“With a more comprehensive depiction of a borrower’s approach to credit management, lenders will be better equipped to make a more accurate assessment of the applicant’s creditworthiness, thereby minimizing their risk,” said Greg Holmes, National Director of Sales and Marketing at Credit Plus.
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. With the availability of this new data, 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 tradelines, not just revolving accounts, and will include credit cards, Home Equity Lines of Credit, student loans, car loans and mortgages.
Credit Plus is partnering with Equifax and TransUnion to provide comprehensive trended credit data via highly customizable reports and 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. Experian’s trended credit data is currently not part of the Fannie Mae rollout, but could become part of the requirements at a later date.