Up Coming Credit Report Change
Are you thinking of buying a home later this year and will need to get a mortgage?
Well take a moment to read this post from George Souto.
Things will be changing on Credit Reports and it is important for potential buyers to understand what lenders will be looking for when an application is made for a mortgage.
Prepare yourself.
Thank you George for this post.
Fannie Mae will be coming out with Desktop Underwriter (DU) Version 10.0 the weekend of June 25, 2016. DU Version 10.0 will begin to incorporate additional credit information in evaluating mortgage applications. DU Version 10.0 will look at a snap shot of a Borrower's credit history by looking at a Borrower's credit balances, and how well the Borrower has managed their accounts over a period of time. This new expanded look at a Borrower's credit history is referred to as "Trended Credit Data", and will require an Up Coming Credit Report Change by Credit Report Providers in how Credit Providers currently provide information on their Credit Reports.
The hopes of using "Trended Credit Data" is to provide a more accurate and vivid picture of a Borrower's credit history, and how well over a period of time a Borrower's credit card balances are paid every month, and whether only minimum payments are made, or does the Borrower tries to payoff their balances quickly. By using "Trended Credit Data" to monitor a Borrower's use of credit, Creditors will be able to better determine a Borrower's behavior over a period of time, and better predict the Borrower's repayment behavior and credit risk.
Whether this Up Coming Credit Report Change will be a positive or negative change, time will tell. The additional information could enable a Lender to feel more comfortable about granting a loan to a Borrower who is border line. At the same time the additional information could make obtaining a loan more difficult. Hopefully the additional information will enable more loans to be granted than denied.
Fannie Mae will be providing more information on this Up Coming Credit Report Change by the end of this month, and I will try to provide an update when they do. Click on this link Fannie Mae DU Version 10.0 Preview Notification to read the full Fannie Mae notification on this Up Coming Credit Report Change.
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Info about the author:
George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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