C.A.R. Commends Fannie Mae for Considering Rental Payment History When Underwriting Loans

LOS ANGELES, Aug. 11, 2021 /PRNewswire/ — CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) President Dave Walsh issued the following statement in response to the…

LOS ANGELES, Aug. 11, 2021 /PRNewswire/ — CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) President Dave Walsh issued the following statement in response to the announcement by Fannie Mae that it will consider rental payment history when underwriting loans for buyers.

«California REALTORS® applaud this change to Fannie Mae’s automatic underwriting system, which will open the door to homeownership for thousands of Californians. Rental payments are often the largest ongoing payment history for non-homeowners and can be a good indication of credit worthiness. In fact, according to C.A.R.’s 2021 Renter Survey, 73 percent of renters said homeownership is important to them and cited credit scores, in addition to down payment, as a major limiting factor.

«For years, C.A.R. has advocated for the use of alternative credit scoring and broadening ways to identify creditworthy buyers. The actions taken today by Fannie Mae and its regulator, the Federal Housing Finance Agency, are a positive step in that direction.»

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 200,000 members, dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)