TransUnion (NYSE:TRU), the first credit reporting agency to bring trended consumer credit data to market with its CreditVision® suite of solutions, applauds Fannie Mae’s decision to utilize this enhanced information in the assessment of mortgage applicants. While details of Fannie Mae’s plan are still forthcoming, their use of trended credit data, starting in mid-2016, has the potential to benefit mortgage borrowers by providing Fannie Mae and mortgage lenders a more comprehensive view of a borrower’s historical credit performance.
“CreditVision is an innovation that has had a dramatic impact on how lenders utilize credit information within their lending strategies. The use of trended credit data by mortgage lenders has the potential to help millions of people access the opportunities that lead to a better quality of life,” said Jim Peck, TransUnion’s president and chief executive officer. “As a global leader in risk and information solutions, we recognize the importance and benefits of using information for good.”
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 access to mortgage loans. TransUnion research indicates that the percentage of consumers in the Super Prime risk tier, who generally have the greatest access to new loans at the lowest pricing, would increase from 12% of the population to nearly 21%.
TransUnion began work on bringing trended credit data to market more than five years ago, and launched CreditVision – the first-ever suite of solutions to utilize such data – in January 2013. Internationally, TransUnion has launched its trended credit data solution in Canada and Hong Kong and the capability is also being pursued in many additional markets across the globe. Hundreds of financial services and insurance companies have already adopted or are currently evaluating CreditVision solutions with many of them experiencing substantial performance lift in underwriting, acquisition and account management strategies. These improvements have allowed lenders to approve more consumers for credit while offering better loan terms based on the improved insights.