Copyright: Diego Grandi

NMHC/NAA submitted a letter this week in response to a 2017 invitation from FHFA that asked stakeholders to comment on the use of alternative credit scoring models for mortgage underwriting; an issue being reviewed in Congress as well. The letter highlights the apartment industry’s view on the importance of accurate credit scoring and evaluation of not just borrowers, but perspective renters as well. 

Broadening the opportunity for credit evaluation could benefit industry stakeholders and “thin credit file” households who may have been credit invisible, unscorable or whose payments may not have been recognized previously in existing credit scoring models. NMHC/NAA endorsed the adoption of a framework that uses new reporting and scoring models incorporating renter payment data but believes any changes to the existing system must remain the decision of FHFA and the Enterprises.