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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.

 

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