Freddie Mac announced Wednesday that on-time rental payments will be included in its underwriting system. The government-sponsored enterprise said that it hopes to incentivize “responsible” renters to make a leap into homeownership.
According to Freddie, this option will be available starting July 10 and will allow mortgage lenders to submit a borrower’s bank account data that shows a 12-month streak of on-time rent payments to its automated underwriting system.
Michael DeVito, CEO of Freddie Mac, said in a statement that millions of potential borrowers have been blocked off from homeownership because they lack a credit score, or have a limited credit details ⇒
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