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What is trended credit data?

Fannie Mae made an announcement last week regarding their desktop underwriting system. In 2016 they are going to start using trended credit data. You may not have heard this term before but trended credit data is really looking at your utilization ratio and they\\u2019re looking further back in credit history than they have in the past. This is primarily because Fannie believes trended credit data is a better predictor of someone\\u2019s ability to repay a debt.

What is trended credit data really looking at? Like I said it\\u2019s really looking at how consumers are paying down balances every month, are they transferring balances between credit cards, are they someone who leaves the balance high and just pays the minimum. What Fannie is trying to predict is will a borrower pay this mortgage back and how consumers carry balances on their credit cards is a very good indicator of whether or not they are ultimately going to repay a mortgage loan in addition to credit cards How will this change impact mortgage industry?

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