Historically, buyers and mortgage lenders have relied on FICO credit score modeling for mortgage credit qualifications and decisions. Trended Credit Data will replace this model as soon as April 1st, 2016. Here are some additional details:
Since the start of the year, there has been a steady stream of information coming out regarding trended credit data – and it promises to keep on coming. In the interest of helping you get prepared, here’s what I can share with you thus far:
Exactly how this new data is going to be used in underwriting has yet to be disclosed. Fannie Mae is expected to be providing guidelines in March. In the meantime, lenders and buyers can at least take comfort in the fact that with a more comprehensive depiction of a borrower’s approach to credit management, they will be better equipped to make a more accurate assessment of the applicant’s creditworthiness.Stay tuned for more information.