The case for considering a mortgage loan applicant’s rent history is compelling. Limited credit history disqualifies many renters ― even those with great rent payment history — from homeownership, and multiple studies confirm that factoring in rent payment history typically increases credit scores.
With its September 18 addition of a “positive rent payment history” feature to the Desktop Underwriter validation service, Fannie Mae is effectively removing one longstanding barrier to homeownership. But are lenders ready to get on board?
Read the full story at MBA.org.