Fannie Mae’s plan boosts tenant credit scores

Exclusive: Fannie Mae’s plan boosts tenants’ credit scores

  • Only positive tenant payments will be reported (those falling behind will be unsubscribed) and tenants can choose to opt out at any time.
  • One in ten adults in the United States, or about 26 million people, are “credit invisible,” meaning they have no credit history with one of the three national credit card companies. credit assessment.
  • Renters seven times more likely than homeowners to have no credit score, Urban Institute study finds

When it comes to credit scores, renters are at a distinct disadvantage compared to landlords.

While mortgage payments are reported by lenders to credit bureaus, landlords generally do not report rental payments, which can hamper tenants’ ability to build a credit history.

Fannie Mae plans to subsidize the cost for owners of multifamily properties it finances to help renters build their credit starting Tuesday, the mortgage giant shared exclusively with USA TODAY.