Fannie Mae’s mission is to expand access to quality, sustainable, and affordable housing. We are focused on addressing the historically inequitable credit opportunities that have edged underserved populations out of homeownership and its generational wealth-building benefits.

Fannie Mae increased opportunities for renters to become first-time homebuyers by allowing lenders to incorporate 12 months of rent payment history in assessing mortgage eligibility and risk through our automated underwriting system, Desktop Underwriter® (DU®). When someone applies for a loan, lenders can use DU to complete a risk assessment and receive a recommendation about a loan’s eligibility for sale to Fannie Mae. By enhancing our underwriting process to include positive rent payment history, we can help lenders serve more prospective homebuyers, especially those with limited credit history – a group disproportionately represented by Black and Latino people.

We are helping to drive systemic changes to decrease housing disparity through data-driven technology and incorporating consistent money management practices into our credit review process. Since automating the inclusion of positive rent payment data into DU in September 2021 through December 2022, more than 3,400 loan applications have become eligible for purchase by Fannie Mae that otherwise would not have been and approximately 41% of the borrowers who have benefited from this enhancement self-identified as Black or Hispanic/Latino.

The early adoption and success of DU’s positive rent data enhancement lies with the industry stakeholders who came together to make it available to consumers—from the technology service providers and asset report vendors who built the capabilities for the secure exchange of the data, to the lenders who develop customer relationships to help people become homeowners. Collaboration with lenders and industry partners has been key to our efforts to develop technology and tools that knock down barriers across the housing journey for underserved renters, homebuyers, and homeowners.

This ground-breaking change is one important step in correcting housing inequities and encouraging the housing system to uncover new ways to serve all of society responsibly and fairly. This innovation demonstrates the potential of using technology and data to reduce systemic barriers to mortgage finance and to provide a more inclusive credit eligibility system.

Across the board, we are working to provide innovative solutions that expand access to housing. In September 2022, we launched a Multifamily Positive Rent Payment pilot and have already onboarded more than 100,000 rental units through January 2023. This is a big step toward helping renters build a credit history and improve their financial health. Together, these efforts aim to reduce the housing equity gap. Learn more here.