Mortgage Industry News
« Return to Mortgage Industry News
Fannie Mae Announces Credit Related DU Upgrades
Tuesday, October 20, 2015
Fannie Mae has announced three enhancements of data used
through its Desktop Underwriter (DU) system which it says will bring more certainty and simplicity to
lenders, employ stronger data capabilities, and help borrowers have access to
sustainable mortgage credit.
- Trended credit data - This new
data will be provided by Equifax and TransUnion to allow a more thorough
analysis of borrower credit history.
The credit reports currently used indicate only the outstanding balance and if a borrower
has been on time or delinquent on existing accounts such as credit cards,
mortgages or student loans. With trended credit data, lenders will
have access to a borrower's monthly payment amounts over time, allowing lenders
to determine if the borrower tends to pay off revolving credit lines such
as credit cards each month, or carry a balance from month-to-month while
making minimum or other payments. DU will be updated to utilize this
trended credit data which will be required for use in underwriting
single-family mortgages by mid-2016. Fannie Mae will provide additional
guidance to lenders in the coming months.
Read Full Article