Posted To: MND NewsWire
It has been under discussion for what seems like forever, but Fannie Mae will begin to recognize non-reported types of credit performance in qualifying a loan . On September 18, it will launch a new feature in its automated underwriting system that will incorporate consumers’ rent payments in credit evaluations. The process, which will require borrower consent, will enable single-family lenders to automatically identify recurring rent payments on an applicant’s bank statements. The company says its new Desktop Underwriting (DU) enhancement creates new opportunities for homeownership for qualified renters with limited credit history but a strong rent payment history while still promoting safe and sound lending, Only consistent rent payments will be considered. Any records of missed or inconsistent…(read more)
Source: Mortgage News Daily
