BORROWERS seeking home loans should know that as of this week, many mortgage lenders will be scrutinizing more detailed credit data.
Fannie Mae, the government-controlled mortgage financing giant, has revised its risk-assessment software to include an expanded version of a borrower’s credit report. The reports now include more details about how the borrower has paid credit card bills over the previous two years.
Mindy Armstrong, Desktop Underwriter product manager in Fannie Mae’s single-family homes division, said the new information would give lenders a more nuanced understanding of how a borrower handles debt and whether they are likely to repay their mortgage. “It will help us better predict the risk of default on a loan,” she said.