source:
  type: guide
  id: fnma-sel-b3-5.3-05
  authority: Fannie Mae Selling Guide B3-5.3-05 — Credit Utilization
  description: Fannie Mae Selling Guide B3-5.3-05 — Credit Utilization.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-5.3-05-full
  canonical_id: fnma-sel-b3-5.3-05-full
  section: Fannie Mae Selling Guide B3-5.3-05 — Credit Utilization
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-5.3-05 — Credit Utilization
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-5.3-05, Credit Utilization (05/31/2016) Introduction This
      topic contains information on credit utilization. Credit Utilization Credit
      Utilization When manually underwriting a loan, the lender must review the borrower’s
      credit report to evaluate their use of revolving credit by comparing the current
      balance on each open account to the amount of credit that is available to determine
      whether the borrower has a pattern of using revolving accounts up to (or approaching)
      the credit limit. Patterns of revolving credit spending are credit risk indicative.
      Credit histories that include revolving accounts with a low balances-to-limits
      ratio generally represent a lower credit risk, while those that include accounts
      with a high balances-to-limits ratio represent a higher credit risk. A credit
      history that includes recently opened accounts that are at or near their limits
      may indicate that the borrower is overextended or overly reliant on the use
      of revolving credit—and, when this is combined with a delinquent payment history,
      it is generally an indication that the borrower has not managed their credit
      successfully. Note: Lenders are not required to analyze trended credit data
      in the credit report. See B3-5.2-01, Requirements for Credit Reports, for additional
      information. Recent Related Announcements There are no recently issued Announcements
      related to this topic. Published May 6, 2026 470'
  judgment: false
