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Fannie Mae extends rent credit reporting pilot to boost tenant scores

EditorNikhilesh Pawar
Published 15/11/2023, 06:06 am

WASHINGTON - U.S. renters participating in a pilot program that tracks their rent payments have experienced a notable boost in their credit scores, according to recent data from Fannie Mae and Esusu. The Positive Rent Payment pilot, initially launched in September 2022, has not only improved average credit scores by 39 points but has also helped over 22,000 previously "credit invisible" individuals establish credit histories.

The program's success has prompted Fannie Mae to extend its duration until December 2024. This extension comes as a response to the strong demand from renters, with nearly 80% expressing a desire for their rent payments to be reflected in their credit scores. The initiative aims to assist tenants in building credit history through regular rent payments which, in turn, can reduce turnover and evictions.

Esusu, a fintech company participating in the pilot, reported significant participation growth. As of September 2023, over 224,000 renters are enrolled across more than 100 property owners, encompassing 2,170 properties and 435,000 units. The Federal Housing Administration (FHA) has endorsed this approach, recognizing the inclusion of positive rental history in credit reports as a way to increase eligibility for FHA loans.

Fannie Mae has committed to covering the enrollment costs for property owners who join the program. This strategic move is designed to encourage wider adoption and support tenants in building stronger financial profiles through on-time rent payments. The Positive Rent Payment pilot is part of broader efforts to make financial systems more inclusive and beneficial for a larger segment of the population.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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