Trended Credit Data: Hope or Hype?; Rates Fall Again; Understanding LLPA Impact on Pricing

Trended Credit Data: Hope or Hype?; Rates Fall Again; Understanding LLPA Impact on Pricing

Fannie Mae’s Desktop Underwriter (DU) Version 10.1 kicks in June 25th, and has several changes that will significantly impact borrowers’ loan approvals. One of the biggest changes is the rollout of Trended Credit Data (TCD). TCD has been touted as boosting mortgage availability for responsible borrowers and lessening future mortgage defaults. To discuss TCD’s ability to do that, we must first understand what it is, what it does, and just as importantly, what it doesn’t do! TCD Will: Show 24 months of payment amounts on revolving accounts, rather than simply reflecting statement balances, minimum required payments, and payment histories. For instance, a borrower might charge $4000 monthly on a revolving account, but pay the balance in full. Current credit reports merely