Trended Credit Data Fannie Mae Update

Trended Credit Data Fannie Mae Update

Experian finally started to report trended credit data to Fannie and Freddie this month. Over the last year and a half, Equifax and TransUnion were reporting trended credit data. That data was being used by Fannie and Freddie to make a determination on mortgage applications. Experian finally got their act together and they’re reporting it as well. Now all three repositories are reporting the trended credit data which is a much more in-depth look at every credit account. Trended data looks at things like;

When did the consumer pay?
How much did they owe?
Did they pay the minimum balance?
Did they pay more than the minimum balance?
Did they pay on the due date?
Did they pay before the due date?

Trended credit is a much more in-depth look at every account on a consumers credit report. It’s an improved way to evaluate the credit risk of an individual. I think it’s a much better solution than the way we collected payment history in the past.

The problem is Fannie also dictates that we use FICO5 for all credit scores for mortgages. FICO5 does not take into account the trended credit data so while d-u is evaluating that information the FICO score is not (FICO5).

Fannie recently made an announcement that they were not going to adopt a new scoring model until after a new version of their evaluation software that comes out June of 2019.

We’re stuck in this situation where the credit report is being scored with one model (not taking into account the trended credit data) and where Fannie Mae is including that information.

If you want to see more videos on trended credit data I’ll link them up here. This is the update, that we’re probably stuck in the situation until at least June of 2019 now it could be longer than that. Only the government would drag this out for this long.

There’s a far better solution by adopting FICO 9 or Vantage 4.0 both of those credit scores take into account the trended credit data.

In my next video, I will weigh the pros and cons of Fannie taking on Vantage vs. FICO or if the credit scores don’t even matter because Fannie is not really looking at them.

Trended Credit Data Fannie Mae Update

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