Last year, Fannie Mae and Esusu teamed up to help renters improve their housing and financial prospects. In September 2022, Fannie Mae’s Positive Rent Payment pilot launched, enabling Fannie Mae borrowers to introduce on-time rent reporting to their properties from companies like Esusu.
Why is rent reporting so important?
Your renters want their timely rent payments factored into their credit score calculations in order to build or improve their credit profiles. An 80% majority of U.S. renters expressed this desire in a recent Fannie Mae survey.
Rent reporting supports renters who desire more financial opportunities like securing an auto loan or mortgage. Unlike mortgage payments, rent payments are not automatically reported to credit bureaus, posing a significant hurdle for renters with thin to no credit history. In fact, 45 million Americans are “credit-invisible” because they lack sufficient financial history to establish a credit score.
Rent reporting offers a way for renters to build credit without taking on debt or paying interest and, instead, rewards them for their on-time rent payments. Fannie Mae’s data shows that 78% of renters believe their credit scores would benefit from including rent payment history.
The results speak volumes
In its first year, the Fannie Mae Positive Rent Payment pilot achieved remarkable outcomes in collaboration with Esusu. Data through September 2023 shows over 224,000 renters in Fannie Mae-financed properties report their rent through Esusu. Notably, 60% of these renters have seen improvements in their credit scores, and 22,155 have established credit scores for the first time. The pilot has also helped over 10,000 Esusu renters transition from subprime to prime credit, granting them access to lower-interest borrowing options.
The positive effects of improved credit scores are substantial. The pilot’s residents who have seen improvements to their credit have built over $2.79 billion in new credit tradelines, opening up new financial opportunities. More than 18,700 Esusu pilot renters obtained new auto loans and over 5,600 secured approval for student loans.
Want to be a part of this transformative initiative?
If you’re a Fannie Mae borrower who wants to enroll for rent reporting through the Positive Rent Payment pilot, now is your chance. Over 960 properties across 42 states and D.C. are already benefitting from a year of free Esusu services, including rent reporting, rent relief for residents, and comprehensive social impact data. Fannie Mae has extended the pilot at no cost to the borrower through December 2024.
Read more about Esusu’s involvement in the pilot or reach out in the form below to see what rent reporting can do for you and your residents. For further insights into the Fannie Mae pilot, visit multifamily.fanniemae.com/positive-rent-payment.