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FHFA: Fannie Mae to include rental payment history in risk assessment, underwriting calculations
The FHFA announced Wednesday that Fannie Mae will now consider rental payment history in its risk assessment processes and underwriting decision.
"For many households, rent is the single largest monthly expense," wrote FHFA Acting Director Sandra Thompson in the announcement. "There is absolutely no reason timely payment of monthly housing expenses shouldn't be included in underwriting calculations."
NAFCU has previously advocated for the use of alternative credit score models to ensure creditworthy borrowers – who have previously been marginalized for lack of traditional credit history and other issues – have access to affordable credit.
The association will continue to work with the FHFA and advocate for policies that do not create additional burdens on credit unions and expand access to credit for those who are unbanked or underbanked.