Credit Scores

The purpose of this job aid is to help provide additional information on data fields required in Loan Delivery for delivering credit scores and other related fields.

For detailed instructions on how to perform other tasks, see the Loan Delivery User Guide, eLearning tutorials, or other job aids. If you do not have access to Loan Delivery and require it, contact your Technology Manager administrator.  

How to Deliver Credit Scores

Loan Delivery collects credit score data for each borrower and also at the loan level. Fannie Mae recommends obtaining at least two credit scores for each borrower. The loan representative credit score is determined based on the single applicable representative credit score of each borrower. To determine the single applicable representative score for each borrower:

• When two credit scores are obtained, choose the lower of the two scores.
• When three credit scores are obtained, choose the middle score (if two of the three scores are the same, choose the middle of the three scores. For example:
• • 700, 680, 680 = 680
  • 700, 700, 680 = 700

The Loan Representative Credit Score field (Sort ID 251) collects the representative credit score assigned to the loan. If there are multiple borrowers, the lender should determine the applicable representative credit score for each individual borrower (lesser of two, or middle of three) and select the lowest applicable score from all borrowers as the representative credit score for the mortgage (disregarding any borrower without a credit score). If there is only one borrower, the single applicable score (lesser of two, or middle of three) is the representative credit score for the mortgage.

The Loan Representative Credit Score (Sort ID 251) is the score used to determine if any loan-level price adjustments will be applied. It is also used to determine loan eligibility for loans with one borrower. Most loans with more than one borrower use the average median credit score to determine eligibility; however, the representative credit score is always used for loan delivery and pricing purposes. For more information about the average median credit score, see the Selling Guide, B3-5.1-01 and B3-5.1-02.  Note that Loan Delivery will calculate the average median credit score for the loan when applicable and will use it to determine if the loan is eligible for purchase in accordance with the credit score eligibility requirements.

Credit Score Method (SID 249/250) collects the method used to select the Loan Level Credit Score across all borrowers. The field is conditionally required if the Loan Representative Score exists. The allowable values are:

• Middle Or Lower Then Lowest - this is the only valid value. All loans delivered to Fannie Mae, (including those not underwritten by Desktop Underwriter® (DU ®)) must provide a loan-level credit score calculated in accordance with the Fannie Mae Selling Guide.
• Average Then Average is not a valid value
• Middle Or Lower Then Average is not a valid value
• Seller Specific is not a valid value

Deliver the applicable credit score for each individual borrower (Sort ID 590) as determined above in the Credit Score field. Below are some additional considerations to keep in mind:

• When delivering a loan containing more than two borrowers, the data provided in the Primary Borrower field will always be sent downstream to Acquisitions systems.
• If the Primary Borrower contains the lowest credit score among all the borrowers, then the Primary Borrower and Secondary Borrower data will be sent downstream, as entered by the user.

NOTE: If the borrower with the lowest credit score is not the Primary or Secondary Borrower, Loan Delivery will systematically adjust the borrower positions in order to submit the borrower data with the lowest credit score in the Secondary Borrower position (as opposed to the Primary). This helps ensure that loans with more than two borrowers are eligible and priced according to Fannie Mae’s guidelines.

Credit Score Impairment Type (SID 247) is required if applicable. The allowable values are:

• Insufficient Credit History
• • If all borrower(s) do not have a credit score, deliver the loan with a value of “Insufficient Credit History”
• Significant Errors Score
• • If any borrower’s credit file does not include complete and accurate information that is sufficient to ensure the validity of the credit score, deliver the loan with a value of “Significant Errors Score”.
  • If the lender has instructed DU to disregard confirmed incorrect foreclosure, bankruptcy, and/or mortgage delinquency information, deliver the loan with a value of “Significant Errors Score”.
  • Do not report “Significant Errors Score” when the lender has instructed DU to disregard derogatory credit data due to extenuating circumstances, do not populate this field.

If the borrower is a Corporation, Government Entity, Joint Venture, Limited Liability Company, Limited Partnership, Non-Profit Corporation, or Partnership, do not populate.

Loan Delivery Fields: Loan Level Credit Information

Loan Delivery Fields - Loan Level Credit Information
Sort ID	Loan Delivery Screen Field Name	One or More Borrower(s) have a Credit Score and No Borrower(s) have Scoring Errors	One or More Borrower(s) have a Credit Score and One or More Borrower(s) have Scoring Errors	One or More Borrower(s) have a Credit Score and One or More Borrower(s) do not have a Credit Score	No Borrower(s) have a Credit Score
251	Loan Representative Credit Score	Deliver the value from among all borrowers with a credit score	Deliver the value from among all borrowers with a credit score including borrowers with impaired score	Deliver the value from among all borrowers with a credit score	Deliver zero
249	Credit Score Method	Middle Or Lower Then Lowest	Middle Or Lower Then Lowest	Middle Or Lower Then Lowest	Leave Blank
247	Credit Score Impairment Type	Leave blank	Significant Errors Score	Leave Blank	Insufficient Credit History

 

Loan Delivery Fields: Borrower Level Credit Information

• Credit Report ID (Sort ID 580) must be delivered for each borrower when a credit score exists.

• Credit Repository Source Indicator (Sort ID 582) identifies that an unimpaired credit repository (and score) is available. It must be delivered for each borrower for all loans. Deliver "FALSE" when:

• • the borrower does not have a credit score,

  • the credit score is invalid due to inaccuracies in the repository's records,

  • the credit score is obtained from an ineligible source such as a foreign credit report, or

  • the borrower is a legal entity.

• Credit Score Source (Sort ID 583) must be delivered when Credit Repository Source Indicator equals "Yes". Valid values for Credit Score Source:
  
  01 - Equifax
  02 - Trans Union
  03 - Experian

• Credit Score (Sort ID 590) must be delivered for each borrower, when a credit score exists.

Loan Delivery Fields: Borrower Level Credit Information when one or more Borrowers do not have a Credit Score or have Credit Score Errors

When the loan has a combination of borrowers that do not have a credit score or have scoring errors, apply the following:

Loan Delivery Fields - Borrower Level Credit Information
Sort ID	Loan Delivery Screen Field Name	One or More Borrower(s) have a Credit Score and No Borrower(s) have Scoring Errors	One or More Borrower(s) have a Credit Score and One or More Borrower(s) have Scoring Errors	One or More Borrower(s) have a Credit Score and One or More Borrower(s) do not have a credit score	No Borrower(s) have a Credit Score
580	Credit Report ID	Deliver the value for each borrower with a credit score Leave blank for each borrower without a credit score	Deliver the value for each borrower with a credit score Leave blank for each borrower without a credit score	Deliver the value for each borrower with a credit score Leave blank for each borrower without a credit score	Leave blank for all borrowers
582	Credit Repository Source Indicator	Deliver "Yes" for each borrower with a credit score Deliver "No" for each borrower without a credit score	Deliver "No" for each borrower with scoring errors Deliver "Yes" for each borrower with a credit score and no scoring errors Deliver "No" for each borrower without a credit score	Deliver "Yes" for each borrower with a credit score Deliver "No" for each borrower without a credit score	Deliver "No" for all borrowers
583	Credit Score Source	Deliver appropriate value for each borrower with a credit score: 01 - Equifax 02 - Trans Union 03 - Experian Leave blank for each borrower without a credit score	Deliver appropriate value for each borrower with a credit score: 01 - Equifax 02 - Trans Union 03 - Experian Leave blank for each borrower without a credit score	Deliver appropriate value for each borrower with a credit score: 01 - Equifax 02 - Trans Union 03 - Experian Leave blank for each borrower without a credit score	Leave blank for all borrowers
590	Credit Score	Deliver the value for each borrower with a credit score (see How to Deliver Credit Scores above – lower of 2 scores, middle of three scores) Leave blank for each borrower without a credit score	Deliver the value for each borrower with a credit score (see How to Deliver Credit Scores above – lower of 2 scores, middle of three scores) Leave blank for each borrower without a credit score	Deliver the value for each borrower with a credit score (see How to Deliver Credit Scores above – lower of 2 scores, middle of three scores) Leave blank for each borrower without a credit score	Leave blank for all borrowers