Fannie Mae announced Trended Credit Data will be required on single-family loans underwritten through Desktop Underwriter (DU). The anticipated release date for the new DU version is June 25, 2016. This is a significant change to the mortgage credit reporting process that will greatly impact underwriting decisions for many consumers.
Trended Credit Data is trade-line detail showing monthly payment amounts made throughout the account history. Trended Credit Data may reveal credit behavior such as:
-if the borrower pays off revolving credit lines each month
-if the borrower makes minimum or other monthly payment amounts
-if the borrower is reducing total amount borrowed over time
-if the borrower makes inconsistent or seasonal changes in monthly payments
The new reporting is expected to favor those that make more than the minimum payment on outstanding debt.
Aaron Lending, LLC 