Expanding the Credit Universe
Fannie Mae and Freddie Mac’s recent updates to include trended and alternative data — such as rental payments and utilities — mark a new chapter in underwriting. These changes help recognize responsible financial behavior previously invisible to traditional scoring.
This expansion could unlock homeownership for millions of consumers with thin credit files, particularly first-generation and younger borrowers.
Risks and Responsibilities
Alternative data must be handled carefully. Lenders must ensure that:
- Data sources are verified, standardized, and updated regularly.
- Decisions remain compliant with fair-lending laws.
- Borrowers are educated about how this data affects their eligibility.
The shift requires technology partners that can integrate multiple data feeds securely and interpret them consistently within underwriting workflows.
The Bigger Picture
Inclusive lending isn’t just socially beneficial — it’s strategic. As the market matures and demand diversifies, lenders who adopt forward-thinking credit evaluation will expand their reach and future-proof their portfolios.
Realeo supports lenders exploring innovative credit models by ensuring title, closing, and recording processes remain just as adaptive — delivering accuracy, speed, and compliance for every borrower profile.
