Fannie Mae pushes adoption of on-time rent payment reporting

Fannie’s Positive Rent Payment Reporting program incentivizes multifamily property owners who share on-time rent payment data, which are collected by three approved vendors – Esusu Financial, Jetty Credit, and Rent Dynamics – and disseminated to the credit bureaus for incorporation in the renter’s credit profile. Fannie Mae will cover the costs of collecting and disseminating rent payment data for a year for those who use one of the three approved vendors to collect the data.

“Around 20% of the US population has little to no established credit history, a group in which Black and Latino/Hispanic people are disproportionately represented,” said Michele Evans, head of Fannie Mae Multifamily. “Of the consumers who do have a credit score, a disproportionate number of Black consumers have a subprime credit score. These imbalances reinforce racial disparities in access to credit and quality affordable housing among renters and homeowners.

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“The absence of sufficient credit history reduces a renter’s ability to access housing in higher-opportunity neighborhoods, obtain a mortgage, and attain lower-cost credit, such as auto loans and education financing. By enabling easier and more expansive adoption of positive rent payment reporting, we can knock down this longstanding barrier to building credit and help more consumers begin to establish a strong financial and credit foundation.”

Fannie Mae noted that this is a “positive-only initiative.” Renters who miss a payment are automatically unenrolled to preserve their credit standing, and renters may opt out of the program if they prefer.