Q: Trended Credit Data—what is it?
A: By leveraging 24 months of the consumer’s balance, payment and credit history trended data provides a more comprehensive view of the consumer. It provides an expanded view of the consumer’s behavior over a two year period as an addition to the typical snapshot of a report.
This allows for better predictions of future behavior and risk assessment.
Q: Why the change?
A: This change in credit analysis has the potential to radically change the mortgage lending industry and the process for evaluating home loan applicants. With a greater window of time, a better pattern of credit behavior can be established and risk assessment improved.
Q: Will all 3 credit bureaus be reflecting trending credit data?
A: No, currently, Equifax and Trans Union are the only two credit bureaus displaying trending data. Experian will continue to report; however, not with trending data.
Q: Will automated approvals from DU be affected by the data?
A: It is anticipated Fannie Mae loan review will include trended data as of the DU 10.0 release in June of 2016.
Q: Will trended tri-merge data in Loan Prospector be acknowledged by Freddie Mac?
A: Currently, Freddie Mac will not be receiving trended data elements in formats readable by machines, this does not include tri-merge data received in human-readable print images within machine-readable (XML or .dat and FFF raw file) formats.
Q: Will this be changing the way credit lenders order reports presently?
A: It will not. Ordering reports through Alliance 2020 Inc. should not change. They will continue to use existing LOS, direct interface or UI connected to us for ordering reports.
Q: How will trending credit data be formatted?
A: See Exhibits A & B for current data format and sample trending credit data format
Q: Can a re-score still be ordered on Equifax and Trans Union credit data?
A: Yes, Re-Scores will be processed as normal
Q: Are there Potential Issues You May Run In to When Reissuing to EMS/LP:
A: EMS’ system will only accept the specific trended data segments that Loan Prospectors needs and nothing more. If there are any additional trended data segments present that Loan Prospector does not strictly require, EMS will generate errors. Please work with Alliance 2020 Inc. to assist with any errors.
Q: Will trending data change the scores on the credit report?
A: Scoring algorithms remain the same and scores are calculated based on the credit date reported at the time a report is ordered. At this time, we do not anticipate any changes in credit scoring as a result of trending data.
Q: Why is trended data not available on all tradelines?
A: Tradelines must qualify
Time-line: March 2016:
March 14th – 21st Trans Union & Equifax Testing
March 21th – 28th Go Live with Trending Data Trans Union and Equifax
*Alliance 2020 Inc. reports will display trending data on or before March 28th* April & May – Alliance 2020 Inc. Webinars (Dates TBD)
June DU (Desktop Underwriter 10.0 Release
- On March 22, 2016