Unlocking Loan Solutions with Radian: Non-Traditional Credit
This episode is a part of Unlocking Loan Solutions with Radian, a micro-learning series for mortgage & real estate professionals, with video, audio, and job aid for each topic. Choose your preferred learning style and take your learning experience to a new level.
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- Download the Job Aid: https://www.radian.com/-/media/Files/Enterprise/Training/QRG/uls-jobaid-non-traditional-credit
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In this episode, we delve into the complex and often misunderstood topic of non-traditional credit history in mortgage loan underwriting. Non-traditional credit history refers to alternative forms of credit that can be used when traditional accounts like student loans, mortgages, credit cards, or automobile loans are not present.
We will explore:
- What is a non-traditional credit history?
- Fannie Mae’s Eligibility Requirements for non-traditional credit
- Underwriting non-traditional credit
- Scenarios to understand the application of non-traditional credit in mortgage loan underwriting
Resources
Fannie Mae Selling Guide
- Section B3-5.4, Nontraditional Credit History: https://selling-guide.fanniemae.com/sel/b3-5.4/nontraditional-credit-history
- B3-5.4-01, Eligibility Requirements for Loans with Nontraditional Credit: https://selling-guide.fanniemae.com/sel/b3-5.4-01/eligibility-requirements-loans-nontraditional-credit
- B3-5.4-02, Number and Types of Nontraditional Credit References: https://selling-guide.fanniemae.com/sel/b3-5.4-02/number-and-types-nontraditional-credit-references
- B3-5.4-03, Documentation and Assessment of a Nontraditional Credit History: https://selling-guide.fanniemae.com/sel/b3-5.4-03/documentation-and-assessment-nontraditional-credit-history
- B3-2-03, Risk Factors Evaluated by DU: https://selling-guide.fanniemae.com/sel/b3-2-03/risk-factors-evaluated-du
- B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction: https://selling-guide.fanniemae.com/sel/b2-2-04/guarantors-co-signers-or-non-occupant-borrowers-subject-transaction
- B2-2-06, Homeownership Education and Housing Counseling: https://selling-guide.fanniemae.com/sel/b2-2-06/homeownership-education-and-housing-counseling
Freddie Mac Seller/Servicer Guide
- 5201.1 Credit assessment with Loan Product Advisor®: https://guide.freddiemac.com/app/guide/section/5201.1
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