Lender technology provider FormFree was ready to support Loan Product Advisor’s new capabilities at launch, helping lenders using the company’s AccountChek verification of asset (VOA reports) boost the number of loan approvals by taking into account on-time rent payments - including those made using mobile apps like Venmo, Zelle and Paypal, the company said. “By factoring in a borrower’s responsible rent payment history into our automated underwriting system, we can help make home possible for more qualified renters, particularly in underserved communities.”
“Millions of American adults lack a credit score or have limited credit history,” Freddie Mac CEO Michael DeVito said in a statement. Last summer Fannie Mae announced changes to its automated underwriting system, Desktop Underwriter, that can help renters improve their chances of being approved for mortgages when they permit lenders to tap their electronic bank statement data to consider rental payment history.įreddie Mac recently followed suit, launching similar capabilities for its automated underwriting system, Loan Product Advisor, which went live on July 10. The bureau’s research shows borrowers who are Black, Hispanic, or living in low-income neighborhoods are more likely to have trouble getting a mortgage or other loans because they have a thin credit file or no credit history at all.īut rental payment history is “highly likely to be predictive of mortgage loan performance,” according to a 2018 analysis by the Urban Institute funded by the National Fair Housing Alliance. The Consumer Financial Protection Bureau has estimated that about one in five adults are either “credit invisible,” or don’t have enough credit history on file to generate a credit score.
#Freddie mac phone number series#
Ready Life, which will use Figure’s Provenance Blockchain to power a suite of financial products that it plans to launch this fall, is currently conducting a Series A funding round led by Figure, the companies said.
“We believe that a family with a documented history of paying their rent on time will pay their mortgage in the same fashion.”īell, a corporate finance attorney and former policy advisor to the Trump administration, joined Ready Life in April, according to his LinkedIn profile. “We are rewriting the rules for homeownership,” said Ready Life CEO Ashley Bell, in a statement. Guild Mortgage announced Monday that it’s partnering with FormFree to utilize the fintech’s new Residual Income Knowledge Index (RIKI) to help borrowers without credit scores qualify for better rates on FHA, USDA and VA mortgages based on their rental payment histories, residual incomes and other data points.įintech lender Figure Technologies announced Tuesday that it will provide both financial backing and blockchain technology for a new startup, Ready Life, which plans to offer mortgages to borrowers without credit scores but have established a track record of paying their rent on time using the company’s Ready Pay Visa Debit Card. More renters could find themselves on the path to homeownership thanks to some recent lender innovations and policy changes at mortgage giants Fannie Mae and Freddie Mac. When the waters get choppy, trust Inman to help you navigate. Join us in person in Las Vegas at Connect, and utilize your Select subscription for all the information you need to make the right decisions. Whether at our events, or with our daily news coverage and how-to journalism, we’re here to help you build your business, adopt the right tools - and make money. In a shifting real estate market, the guidance and expertise that Inman imparts are never more valuable.