Fannie Mae (FNMA) announced that it will require the use of TransUnion and Equifax trended credit data when underwriting single-family borrowers through Desktop Underwriter. As we continue to move toward the transition from legacy credit reports to CreditVision Mortgage Credit Reports, we want to provide a concise update of where we are in the process. Alliance 2020 will be working closely with Trans Union and Equifax to start the conversion process which will start in early March 2016. All DU transactions should have the trended credit data from both TransUnion and Equifax by 4/1/2016. In late
June 2016, FNMA will announce a specific “go live” date, which is the date when FNMA will begin underwriting loans with the trended credit data incorporated into underwriting standards. FNMA will provide communication to the lending community in the near future.
Fannie Mae is intending to send a “release preview” that speaks to the trended data being part of the DU Version 10.0 release in June. The release notes are then scheduled for the end of February, with a Selling Guide update to follow. Trended credit data elements have been added to the MISMO 3.4 reference model. However, end-users (e.g., LOS providers, lenders) who need this data in their XML response files have not yet adopted the 3.4 model and need a standard way to accommodate this data in the MISMO 2.3.1 model. The MISMO organization is actively advancing an effort to put forth a recommendation to accommodate trended credit report data for users of the MISMO 2.3.1 reference model, so stay tuned on this progression.
What is trending credit data?
Trending credit data is an expanded view of consumer credit data. It provides a historical perspective of specific consumer behaviors such as scheduled payments, actual payments, and past balances. The opportunity is created to extract helpful statistics and predict future values based on past value and it measures a sequence of data points at successive points in time spaced over time intervals in which are uniform. Refining your credit risk underwriting strategies with trended data is a key part of the reasoning behind the new feature.
Alliance 2020 Inc. is committed to providing knowledge of this new standard, give any additional training where needed and ensure that each of you are set to help make the mortgage market smarter, safer and open to many more consumers!
- On February 9, 2016