A move anounced by Fannie Mae to consider Rent Payments as a factor in assessing credit score could be an opportunity for renters to build good credit, or just another way people who are struggling are further burdened in their effort to escape their lower state. The mortgage giant announced plans to factor in rent payment history starting September 18th, 2021.
Fannie Mae to Add Rent Payments to Credit Evaluations
From www.mortgagenewsdaily.com
2021-08-12 07:00:00
Excerpt:
It has been under discussion for
what seems like forever, but Fannie Mae will begin to recognize non-reported types
of credit performance in qualifying a loan. On September 18, it will launch a
new feature in its automated underwriting system that will incorporate
consumers’ rent payments in credit evaluations.The process, which will require
borrower consent, will enable single-family lenders to automatically identify
recurring rent payments on an applicant’s bank statements. The company says its
new Desktop Underwriting (DU) enhancement creates new opportunities for
homeownership for qualified renters with limited credit history but a strong
rent payment history while still promoting safe and sound lending,Only consistent rent payments will
be considered. Any records of missed or inconsistent rent payments identified
in the bank statements will not negatively affect the applicant’s ability to
qualify for a loan sold to Fannie Mae. Rent payments that appear in the…
.jpg%2F440px-Joe_Biden_(49385177488).jpg&f=1&nofb=1&ipt=de57f84e36140bdf38dd675f62b9f44b31da651a15318af4c836531440a7828c&ipo=images)
