January 17th, 2017 6:08 PM by Narbik Karamian
Credit reports currently used in mortgage lending indicate only the outstanding balance, utilization and availability of credit, and if a borrower has been on
time or delinquent ...
The launch of Fannie Mae's D.U. (Desktop Underwriter- Fannie Mae’s automated underwriting software) Version 10.0 in September, 2016 will use Trended Credit Data in its credit risk assessment, which provides access to historical monthly data on several factors, including balance, scheduled payment, and actual payment amount that a borrower makes.
Below is a histotical glance at past Fannie Mae D.U. software updates. Currently, some lenders still use D.U. 4.0 for underwriting and approving residential Loans.
FICO 1 (1989)
FICO 98 (1998)
FICO 4 (2004)
FICO 8 (2009)
FICO 9 (2014)
Below is a photo of a Teltex device used in early credit reporting:
An example of using Trended Credit Data in credit valuations:
According to EquifaxEQUIFAX
“Trended data is the most important tool developed
by the credit reporting agencies since the advent of
the credit score.”
STEVE CHAOUKI, THE HEAD OF
TRANSUNION’S FINANCIAL SERVICES GROUP
“Trended credit will allow more consumers to
generate higher credit scores, he said. Roughly
three million “thin file” consumers, who may only
have one credit account, could now potentially
rank as prime or super-prime borrowers, he
said.”
FROM NCRA, TERRY CLEMANS
“Could an applicant with a 750 credit score now be
denied due to the new trended credit data
exposing the consumer’s steady rise in credit
consumption over the past 30 months?” said
Clemans executive director of the National
Consumer Reporting Association.
Founded in 1992, the National Credit Reporting Association, Inc.
(NCRA) is a national trade organization of consumer reporting agencies
For more information on Trended Credit Data reporting and Fannie Mae 10.0, please contact us at 408-315-2834.