FNMA Announces Trended Data Requirement.

“The greatest change to the mortgage credit reporting process since the adoption of the credit score,”
 – National Consumer Reporting Association
Beginning June 25th Fannie Mae’s underwriting process will require trended data. Trended data is a detailed record of a consumer’s credit history.  It includes the historical payment amount for each month going back 30 months under Transunion’s CreditVision or 24 months under Equifax Dimensions.
Initially, only TransUnion’s CreditVision and Equifax’s Dimensions trended data sets will be required.  Experian’s trended credit data is currently not required, but could be at a later date.
Since the credit scores currently offered by FICO and VantageScore do not consider trended credit data, it’s unsure how trended data will impact underwriting. More information from Fannie Mae is expected in March. Below is an example of a tradeline including trended data. Note: this is a default format - any customized format you currently use will be maintained resulting in very little change to the appearance of your credit reports. 
An example of how trended data appears in the credit report.
For more information, see the following resources:
Frequently Asked Questions
What is trended credit data?
Trended credit data provides an expanded, more granular view of the consumer by leveraging up to 30 months of a consumer’s past balance, payment, and credit utilization history. It provides a fuller picture of a consumer’s credit behavior, supplementing the traditional moment-in-time credit snapshot with a more dynamic 2-year picture of a consumer’s history of managing revolving accounts. With this additional historical data (such as payment and balance,) lenders may be able to see how consumers have managed their credit accounts over time, allowing them to better predict future behavior and assess risk. For example, a consumer with a large credit card balance who pays in full every month (a “transactor”) likely has a higher level of creditworthiness than a consumer with a large credit card balance who only makes the minimum required payment (a “revolver”). Existing credit reports can’t always differentiate between these two types of consumers.
Will Freddie Mac accept the new trended tri-merge data in Loan Prospector®?
At this time, Freddie Mac will not receive the new data elements in machine readable formats; however, they will receive the new tri-merge human readable print images embedded within the machine readable (XML or .dat and FFF raw file) formats.
Will the way we order credit reports today change?
No.  The process of ordering credit reports will not change. Requests will continue to be processed without change through your LOS, GSE UI, Mortgage Preflight or directly through the Credit Technologies website. 
When do these changes occur?
FNMA roll out of trended data begins June 25th. We will add trended data to existing files approximately 30 days prior to the FNMA required date to facilitate testing. 
How does this affect underwriting?
While trended credit data will be included as part of the Fannie Mae loan review with the DU 10.0 release in June 2016, Fannie Mae hasn't released guidelines as to how trended data will be scored or impact the underwriting process. Neither FICO nor VantageScores incorporate trended data into their scoring system. For additional information please refer to Fannie Mae’s 10.0 Preview release notes
What repositories are included in this update?
TransUnion and Equifax are the only repositories providing trended data in the beginning of the rollout. Experian may be included at a later date.
What will the report look like?
The appearance of your credit report will change very little. Each qualifying tradeline will simply be appended to include the trended data. All custom formats will be maintained. 
Why do some tradelines have the trended credit data but others do not?
Not all tradelines qualify. Trended Credit Data may not be present when the account type is :
  • Authorized User Child/Family Support Collections
  • Duplicate trade
  • Insufficient Information to Score: File contains no trade, inquiry, collection or public record. 
  • Less than 6 months of history in an Open status.
  • Lost/Stolen
  • Masked trade data for certain narrative codes (bankruptcy, in dispute, medical, repossession, foreclosure...)
  • Months since reported > 24
  • Public Records
  • Subject Deceased
  • System Reject - Model Delivery is Temporarily Unavailable
Do the balances shown reflect the balance before or after the monthly payment?
Trended credit data reflects the balance after the monthly payment was made as reported by the data furnisher for the applicable tradeline.
Will reports used for pre-close (i.e. FNMA LQI), post-close and account review pulls include trended data as well?
Yes. All reports used for mortgage purposes will include trended data.
When will trended credit data be available in MISMO?
Our understanding is MISMO has added containers for trended credit data in their 3.4 version; however, they are actively reviewing a possible solution for MISMO 2.3 with more information expected soon.
Will a rescore impact trended credit data?
No.  Trended credit data is not included in the mortgage industry credit scores. Making changes to the trended credit data fields would not impact current FICO scores.
Does this update change the pricing of credit reports?
TransUnion and Equifax have reported there will be a significant increase in the cost of the trended data file

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