For millions of renters aiming to buy a home, credit score requirements can be a high hurdle. According to Federal Housing Finance Agency (FHFA) Director Bill Pulte, recent discussion among federal agencies and policymakers suggests that including rental payment history in mortgage credit evaluations could help more renters qualify.

Currently, most credit scoring models give little or no weight to on-time rent payments, even though rent is often a household’s largest monthly expense. Fannie Mae and Freddie Mac have begun pilot programs to incorporate positive rent history—but industry-wide adoption may still be years away.

‍Why It Matters

• Potential New Buyers: Adding rental history could expand the pool of mortgage-qualified buyers, especially among younger households and first-time buyers.
• Market Impact: More qualified buyers could stimulate demand in entry-level and affordable housing markets.
• REO Angle: In distressed property sales, especially in affordable price ranges, this policy could boost demand and absorption rates if implemented.

Action Items

This isn’t an immediate change, but REO professionals should watch it closely. Expanded credit scoring could shift demand in key segments—and create faster movement on lower-priced inventory.

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