WASHINGTON (10/21/15)--A series of innovations announced this week by Fannie Mae are intended to bring more simplicity to lenders and increase access to credit for borrowers. The innovations are designed to reduce lenders’ costs while allowing them to serve consumers more efficiently.
Fannie lenders will be required in mid-2016 to use trended credit data when underwriting single-family borrowers through Desktop Underwriter, Fannie’s automated underwriting program.
Currently, credit reports used in mortgage lending only indicate the outstanding balance and if a borrower has paid on time or is delinquent in existing credit accounts. The trended data, provided by TransUnion and Equifax, will allow lenders to access monthly payment amounts on these accounts over time.
Desktop Underwriter will be updated to utilize this data, and Fannie expects to issue updated guidance to lenders in the coming months.
Other innovations include: