Fannie Mae Opens the Door for Renters to Become Homeowners – theMReport.com

Beginning September 18, 2021, Fannie Mae’s Desktop Underwriter (DU) will enable single-family lenders–with permission from mortgage applicants–to automatically identify recurring rent payments in the applicant’s bank statement data to deliver a more inclusive credit assessment. For qualified renters who may have limited credit history, but a strong rent payment history, Fannie Mae’s DU enhancement creates new opportunities for homeownership, while promoting safe and sound lending.

“For many households, rent is the single largest monthly expense. There is absolutely no reason timely payment of monthly housing expenses shouldn’t be included in underwriting calculations,” said Federal Housing Finance Agency (FHFA) Acting Director Sandra L. Thompson. “With this update, Fannie Mae is taking another step toward understanding how rental payments can more broadly be included in a credit assessment, providing an additional opportunity for renters to achieve the dream of sustainable homeownership.”

Source: Fannie Mae Opens the Door for Renters to Become Homeowners – theMReport.com