SIR Credit Reports for Mortgage Purposes to Include Experian Trended Credit Data

Effective December 11, 2017

Effective on Monday, December 11, all SIR credit reports delivered for first mortgage application purposes will include trended credit information from all three national credit repositories. The release of Experian’s trended information will be well in time for the expected Fannie Mae update to Desktop Underwriter (DU) on December 15 to begin underwriting with this information.

As you recall, Fannie Mae begin using trended credit information in 2016 when DU was updated to use this information in its automated underwriting. At that time, it was the Equifax and TransUnion trended data that was delivered to DU. Since then, Fannie has been working with Experian to include their trended information as well. As indicated in the September 19, 2017 Fannie Mae Bulletin, Fannie will begin using Experian information in mid-December.

As previously stated by Fannie Mae, the use of trended information provides an additional layer of visibility on actual payments being made on revolving debt, something that had not been included in a credit report in the past. It offers an extended view on whether a consumer is trending toward high or low risk based revolving debt is paid over time. Trended data can identify whether a borrower is a transactor; one who uses revolving debt and pays in full each month, or a revolver; one who uses revolving debt and makes minimum payments or payments less than the balance owed.

No Action is Needed on Your Part

If you are receiving SIR credit reports for Residential First Mortgage purposes, regardless of your investor, you will begin receiving Experian’s trended data and will continue receiving the Equifax and TransUnion data automatically. Your printed credit reports will continue to report 24 months of payment amounts as you have become accustomed to receiving. Links are available through our technology that will allow you to view the specific bureau reporting of this information.

As always, we are pleased to deliver comprehensive information to help you in your risk assessment and underwriting processes. Please feel free to contact us with any questions you may have on the introduction of Experian Trended Data to our reports. Contact us anytime at 800.332.9479 x362, online or at [email protected].