💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

Fannie Mae extends rent credit reporting pilot to boost tenant scores

EditorNikhilesh Pawar
Published 2023-11-14, 02:06 p/m

WASHINGTON - U.S. renters participating in a pilot program that tracks their rent payments have experienced a notable boost in their credit scores, according to recent data from Fannie Mae and Esusu. The Positive Rent Payment pilot, initially launched in September 2022, has not only improved average credit scores by 39 points but has also helped over 22,000 previously "credit invisible" individuals establish credit histories.

The program's success has prompted Fannie Mae to extend its duration until December 2024. This extension comes as a response to the strong demand from renters, with nearly 80% expressing a desire for their rent payments to be reflected in their credit scores. The initiative aims to assist tenants in building credit history through regular rent payments which, in turn, can reduce turnover and evictions.

Esusu, a fintech company participating in the pilot, reported significant participation growth. As of September 2023, over 224,000 renters are enrolled across more than 100 property owners, encompassing 2,170 properties and 435,000 units. The Federal Housing Administration (FHA) has endorsed this approach, recognizing the inclusion of positive rental history in credit reports as a way to increase eligibility for FHA loans.

Fannie Mae has committed to covering the enrollment costs for property owners who join the program. This strategic move is designed to encourage wider adoption and support tenants in building stronger financial profiles through on-time rent payments. The Positive Rent Payment pilot is part of broader efforts to make financial systems more inclusive and beneficial for a larger segment of the population.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.