Rental Payments Now Included in Mortgage Underwriting

Changes Will Increase Access to Mortgage Financing and Increase Homeownership

Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae, the nation’s largest housing government-sponsored enterprise, will now require lenders to consider a borrower’s rental payment history as part of the mortgage underwriting process.

“This is a critically important move for expanding access to mortgage credit,” said Mitria Wilson-Spotser, Director of Housing Policy for the Consumer Federation of America. “Considering rent will allow more consumers to demonstrate a responsible payment history and, as a result, decrease their risk assessment as part of the home buying process. CFA strongly encourages the agency to adopt the same policy for Fannie Mae’s counterpart, Freddie Mac.”

“Because rent is the single largest monthly payment for many households, timely payment should absolutely be included in underwriting calculations”, said Wilson-Spotser.

The update to Fannie Mae’s underwriting systems is effective immediately. FHFA’s announcement is available here.