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Data Facts, Inc. Announces Key Pointers for Upcoming Trended Data Credit Reports

by Susan McCullah

Mar 16, 2016 8:55:30 AM

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MEMPHIS TN--(Marketwired - March 16, 2016) - Data Facts, Inc, a nationwide provider of mortgage lending solutions, recently shed light on how the addition of mortgage trended data will impact mortgage professionals. 

Julie Wink, Data Facts EVP and Managing Partner, understands the change will be a big one. "The Fannie Mae announcement about trended data being added to mortgage credit reports for the underwriting process is going to cause a shift in the industry that hasn't been seen since the implementation of credit scores."

A few pointers that mortgage professionals need to know:

  • Definition of trended data.

An enhanced credit report with new, valuable data fields, including Actual Payment Amount, and up to 30 months of detailed account history for each tradeline.

  • Fannie Mae is driving this change.

According to the Fannie Mae announcement, this data allows a smarter, more thorough analysis of the borrower's credit history. Currently, credit reports used in mortgage lending only indicate the outstanding balance and if a borrower has been on time or delinquent on existing credit accounts. With trended credit data, lenders will have access to the monthly payment amounts that a consumer has made on these accounts over time. Among other benefits, this will allow lenders to determine if the borrower tends to pay off revolving credit lines such as credit cards each month, or if the borrower tends to carry a balance from month-to-month while making minimum or other payments. 

  • Only 2 of the 3 bureaus are currently on board. 

TransUnion and Equifax are the only repositories set up at this time to supply mortgage trended data in the beginning of the rollout. Experian could possibly offer it at a future date.

  • Trended data CANNOT be used in lending decisions during the test phase. 

In the March-June period, lenders are prohibited from using trended data in mortgage lending decisions. 

  • The guideline for how exactly trended data affects underwriting has not been announced yet. 

As of now, Fannie Mae hasn't shared specifically how mortgage trended data will be scored or impact the underwriting process. Trended credit data will be included as part of the Fannie Mae loan review with the DU 10.0 release in June 2016. The FICO credit scoring model currently does not incorporate trended data into their scoring system. 

  • Not all tradelines will show trended data. 

The new trended credit data information will not show on certain account types. Authorized user accounts, public records, and accounts with less than six months of credit history are examples of accounts that will not show trended data. 

  • This change is coming in June, 2016.

Fannie Mae has announced the change will go into effect the weekend of June 25. However, this could change, so it's important to follow all the updates from Fannie and the bureaus. 

The Fannie Mae announcement has shaken up the industry, and will change the way consumers are analyzed in lending decisions. Wink advises watching this development closely. "By staying on top of breaking information, lenders can be ready for this shift without hindering productivity or progress."

About Data Facts, Inc.

Since 1989, Data Facts, Inc. has provided trusted information to mortgage lending and background screening professionals to reach sound lending and hiring decisions. Headquartered in Cordova, TN, the company maintains a national footprint and stays on the forefront of industry regulations. This insight allows them to provide a suite of comprehensive solutions to advance their clients' efficiency. Their dedication to operational excellence and personalized support has solidified them as an industry leader for over 26 years.

Their commitment to above industry standards is proven by their NAPBS accreditation, sustaining SOC 1 and SOC 2 certifications, all staff members upholding FCRA certification, and maintaining active roles on the NCRA and multiple MBA boards.

In addition, Data Facts, Inc is certified by the Women's Business Enterprise National Council (WBENC) as a women-owned business. 

For more information, please contact Data Facts, Inc. at 901-685-7599 or email Subscribe to their lending solution or background screening blog follow them on Twitter at @dfscreening and @dflending, and connect on LinkedIn at Data Facts, Inc. to stay abreast of industry updates.


Topics: mortgage trended data, fannie, fannie mae

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