Fannie Mae’s plan bolster renters’ credit scores

Exclusive: Fannie Mae’s plan bolster renters’ credit scores

  • Only positive payments of renters will be reported (those who fall behind will be unenrolled) and renters can chose to opt out at any time.
  • One in ten adults in the U.S., or about 26 million people, are “credit invisible,” meaning they do not have a credit history with one of the three nationwide credit reporting companies.
  • Renters are seven times more likely than homeowners to lack a credit score, according to a study the Urban Institute

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

While mortgage payments are reported by lenders to credit bureaus, landlords typically don’t report rental payments  – and that can hamper renters’ ability to build a credit history.

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

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