Trended Data Requirement
*DU Version 10.0 has been rescheduled for release on September 24, 2016 . Click HERE for more information from Fannie Mae. Check back here for more information as it becomes available*
Beginning September 24, 2016 Fannie Mae’s underwriting process will require trended credit data. Trended data is a detailed record of a consumer’s credit history. It includes the historical payment amount for each month going back 30 months under Transunion’s CreditVision or 24 months under Equifax Dimensions. Experian’s trended credit data is expected to be added at a later date, possibly beginning in January 2017.
Since the credit scores currently offered by FICO and VantageScore do not consider trended credit data, it’s unsure how trended data will impact underwriting. Below is an example of a tradeline including trended data. Note: this is a default format – any customized format you currently use will be maintained resulting in very little change to the appearance of your credit reports:
Click Here to see a full tri-merge credit report with trended data
Quickly understand the key trends happening with your applicant’s credit with TrendScape™
TrendScape also forecasts if/and when there could be a FICO score change which might affect your applicants’ current loan program qualification. Turn the new trended data into useful information with features like:
- A mid-score forecast that matters
- A concise description of the balance trend
- Knowledge of how they pay
Click Here to see an example of TrendScape
For more information, see the following resources:
- Trended Credit Data Improves DU Risk Assessment and Supports Access to Mortgage Credit – A commentary by Fannie Mae’s VP Credit Risk Analytics and Modeling, Eric Rosenblatt. Provides background on how and why Trended Credit Data is expected to assist lenders and creditworthy borrowers.
- Trended Credit Data and Desktop Underwriter® (DU®) – A one-page infographic from Fannie Mae on Trended Credit Data and DU®. Good training resource for lenders.
- Desktop Originator/Desktop Underwriter Release Notes DU Version 10.0 – Published by Fannie Mae on February 23, 21016
- Desktop Originator/Desktop Underwriter 10.0 Overview – A short presentation from Fannie Mae on what to expect, including details on Trended Credit Data
- DU Version 10.0 FAQ – Frequently Asked Questions about DU Version 10.0 being released on June 25, 2016
- Equifax: Using Trended Data to Better Understand Customer Behaviors – Trended Credit Data product information from Equifax
- Transunion: Trended Data to Support Fannie Mae Mortgage Initiative – Press release from October 19, 2015 announcing Fannie Mae plans to adopt Trended Credit Data standard.
- Transunion Creditvision Study – A video presentation from Transunion’s Chris Cartwright, President U.S. Information Services, where he reveals very compelling study results on the power of using Trended Credit Data in the mortgage industry.
- Washington Post Article – This Washington Post article summarizes Trended Credit Data in a piece called “When Seeking a Mortgage You Don’t Want to be Categorized as a Revolver.”
Frequently Asked Questions
What is trended credit data?
Will Freddie Mac accept the new trended tri-merge data in Loan Prospector®?
Will the way we order credit reports today change?
When do these changes occur?
How does this affect underwriting?
What repositories are included in this update?
What will the report look like?
Why do some tradelines have the trended credit data but others do not?
Do the balances shown reflect the balance before or after the monthly payment?
Will reports used for pre-close (i.e. FNMA LQI), post-close and account review pulls include trended data as well?
When will trended credit data be available in MISMO?
Will a rescore impact trended credit data?
Does this update change the pricing of credit reports?
Why does the Actual Payment Amount (APA) in the trended data sometimes not report?
Please check back here for the most updated information on trended credit reports in the mortgage industry and how Advantage Credit is supporting its customers through this transition.