Trended Data is Coming

board-1193335_1920Fannie 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.

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