Fannie Mae Desktop Underwriter (DU) uses trended credit data -- a 24-month history of payment amounts on revolving accounts -- to assess borrower credit behavior beyond just the current score. This distinction matters for some DU approvals and the risk categorization that follows.
Transactors vs. Revolvers
Trended data allows DU to identify whether a borrower consistently pays off revolving balances (a transactor) or regularly carries a balance month to month (a revolver). Transactors historically have lower default rates even at similar FICO scores. DU applies this behavioral data to differentiate risk, which can improve the risk class for a borrower who pays in full monthly even if their current utilization is temporarily elevated.
What Data Sources Are Used
Fannie Mae's trended data comes from Equifax and TransUnion credit files, specifically the 24-month payment history fields that those bureaus populate. Experian provides trended data as well, but DU's integration primarily uses the other two bureaus for this feature.
Practical Implications for MLOs
If a borrower has a lower FICO due to high current utilization but consistently pays balances in full, DU may still grant an Approve/Eligible finding due to favorable trended behavior. Conversely, a borrower with a moderate FICO who has been making minimum payments may receive a less favorable DU recommendation. This is why discussing payment behavior -- not just scores -- matters in the pre-approval conversation.
Aria on vicariointel.com can explain how DU is likely to interpret a specific credit profile including trended data implications. Use it to set accurate borrower expectations before running DU.
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