TransUnion, the first credit reporting agency to bring trended consumer credit data to market with its CreditVision® suite of solutions, applauds Fannie Mae’s announcement to utilize such information in the assessment of mortgage applicants beginning in mid-2016.
While details of Fannie Mae’s plan are still forthcoming, we know that trended credit data can benefit mortgage borrowers by providing Fannie Mae and mortgage lenders with a more comprehensive view of a borrower’s historical credit performance. In fact, a recent TransUnion analysis found that the use of trended data can potentially impact vast numbers of consumers in the housing market through better pricing and greater access to mortgage loans
The super prime customer base could expand by more than 23 million U.S. consumers by using TransUnion’s CreditVision® New Account Score, according to a new study by TransUnion. And millions of consumers could benefit from better rates and terms on credit products—a win-win for both lenders and consumers.
The study also shows that, across the full U.S. population, approximately 26.5 million consumers who were previously deemed unscorable by traditional risk scores can be effectively scored by the CreditVision New Account Score. Nearly 3 million of these consumers would be placed into the prime or super prime risk tiers.
CreditVision uses enriched data and analytics to provide a more comprehensive view of consumer performance. CreditVision's deep insights are derived from our enriched credit report, extended account history information, actual payment amount data and historically-based algorithms. It reveals how consumers have changed their credit usage and payment behaviors over time—helping you make more precise lending decisions and move ahead of the competition.