Fannie Mae to help first time homebuyers

The Federal Housing Finance Agency has announced that Fannie Mae is now allowing lenders to factor in an applicant’s rental payment history as part of their credit history which should help those with lower ratings. Up to now, landlords haven’t report rental payment history data to credit reporting firms even though rent is typically the largest single expense.

Using rental payments in underwriting should help many first-time buyers to get a mortgage. It is hoped that expanding credit opportunities through alternative data will help ease the housing crucnh.

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