Fannie Mae Reschedules DU 10.0 and Credit Trending Data to September 24, 2016
On June 20, 2016, Fannie Mae issued a statement with their DU Release Notes that Desktop Underwriter® (DU®) Version 10.0 release has been rescheduled for the weekend of September 24, 2016.
The information contained in the Release Notes that is specific to trended credit data is provided below:
Trended Credit Data
Credit reports currently used in mortgage lending indicate only the outstanding balance, utilization and availability of credit, and if a borrower has been on time or delinquent on existing credit accounts such as credit cards, mortgages, or student loans.
DU Version 10.0 will use trended credit data in the credit risk assessment, which provides access to historical monthly data (when available) on several factors, including: balance, scheduled payment, and actual payment amount that a borrower has made on the account.
Leveraging trended data in the DU risk assessment allows a smarter, more thorough analysis of the borrower’s credit history. The use of trended data is a powerful predictor of risk, and its use enhances the DU risk assessment to better support access to credit for creditworthy borrowers.
The DU Version 10.0 risk assessment will only use the trended credit data on revolving credit card accounts for the most recent 24 months’ payment history (even if more than 24 months’ worth of data is provided on the credit report). The trended credit data may be used on other types of accounts in a later version of DU.
NOTE: The use of trended credit data by DU will not impact FHA or VA loan casefiles underwritten through DU.
Please refer to the DU Release Notes for other important information
Refer to Bankers Advisory’s Compliance Monitor article dated June 17, 2016 for additional details about credit trending and other updated topics by Fannie Mae
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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