Freddie Mac to Include On-Time Rent in Home Loan Approvals

Freddie Mac announced that on-time rental payments will be included in its underwriting system. The government-sponsored venture claimed that it wants to incentivize “liable” tenants to make a jump right into homeownership.

According to Freddie, this alternative will certainly be available beginning July 10 as well as will certainly permit home loan providers to submit a borrower’s checking account information that shows a 12-month touch of on-time rent repayments to its automated underwriting system.

Michael DeVito, CEO of Freddie Mac, claimed in a statement that millions of possible debtors have actually been blocked off from homeownership since they do not have a credit score, or have don’t have much credit at all.
“By factoring in a borrower’s responsible rent payment history into our automated underwriting system, we can help make home possible for qualified renters, particularly in underserved communities,” DeVito said.

Freddie stated in its announcement that a borrower’s checking account information- with a borrower’s permission- can be removed from apps such as Zelle, Venmo, or PayPal. The federal government- sponsored business added that requirements for submitting lease repayment data to its underwriting system will certainly be introduced at some time in…