Fannie Mae launches new wave of underwriting updates

“Fannie Mae’s preliminary research has shown that assessing a borrower’s cash flow activity through bank statement data can make more predictive risk assessments, especially for consumers with no or limited credit history,” the GSE said in a statement.

“We believe consumers should benefit from their responsible money management habits and a steady stream of income when buying a home, even if they don’t have an established credit history,” said Malloy Evans, executive vice president and head of Fannie Mae’s single-family business. “Traditional lending practices make it hard for borrowers with no credit score to access credit, so we’ve taken steps that may help them responsibly qualify for a home loan using data that provides a more holistic view of how they manage their money.”

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