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What is Trended Credit Data?Trended credit data is expanded information on a borrower’s credit history at a trade line (credit line) level on several monthly factors, including:
This allows a smarter, more thorough analysis of the borrower’s credit history. It also helps creditworthy borrowers obtain access to mortgage credit and sustainable homeownership. Effective June 26th Fannie will start integrating the new trended credit data live into their decision model using the old FICO5 scoring model. TransUnion and Equifax have introduced the trended credit data on all credit reports, while Experian has not. Fannie Mae is delaying the roll-out of the credit scores that include this information; FICO9 scores and Vantage 4.0 |
How will this affect mortgage loan approvals?Including trended credit data will:
The overall percentage of loans that receive an Approve/Eligible recommendation is expected to remain relatively stable. Fannie Mae considers a number of factors in determining eligibility for its acquisition of loans, including, but not limited to, the borrower’s credit score, Loan-to-Value ratio, Debt-to-Income ratio, cash reserves, property type, and loan type, as detailed in its Selling Guide. |