Freddie Mac Multifamily Grows Renter Credit Building Initiative

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) expands its renter credit-building initiative by inviting new vendors to participate. Launched in November 2021 with Esusu, the program has enrolled over 150,000 households, aiding more than 20% of participants in establishing their credit scores. The initiative aims to make on-time rent reporting an industry standard. Vendors must report only on-time payments at no cost to renters, ensure credit for past rental history, and maintain renters' privacy. By enhancing these standards, Freddie Mac seeks to amplify its positive impact on renters' financial health.

Positive

• More than 150,000 households enrolled in the credit-building initiative.
• Over 20% of participants established credit scores for the first time.
• Efforts to set on-time rent reporting as an industry standard.

Negative

• None.

New Vendors Invited to Participate in Effort to Encourage Rent Reporting Industry Standard

MCLEAN, Va., Feb. 01, 2023 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily will begin accepting additional vendors for its renter credit building initiative as the company grows its effort to ensure on-time rent payments are reported to the major credit bureaus. The company launched the initiative with Esusu in November 2021. To date, the program has enrolled more than 150,000 households, establishing credit scores for the first time for more than 20% of participants. To facilitate the addition of credit reporting providers, Freddie Mac has posted a new vendor intake form to its website and will consider new participants in the program against a set of criteria it announced late last year.

“The credit building initiative we began with Esusu is helping tens of thousands of renters establish and strengthen their credit scores,” said Corey Aber, Vice President for Multifamily Mission, Policy & Strategy at Freddie Mac. “We launched this initiative with clear standards that prioritized renters’ interests. Today, we’re looking to grow our impact by strengthening those standards and by inviting other vendors to participate. Our goal is for on-time rent reporting to be an industry standard, and we’re proud to have set that in motion.”

To participate in Freddie Mac’s credit building initiative, a vendor will need to:

• Demonstrate that they will only report on-time rent payments to all three credit bureaus at no cost to renters.
• Ensure that renters receive credit for their past rental history. Freddie Mac will require reporting of up to 24 months of available, prior on-time rental payments.
• Have a process in place to avoid negative credit impact when past due rent payments occur.
• Protect renters’ privacy through clear policies and data security practices.
• Work with existing property management software systems and offer platforms that are easy to use for renters and property owners.
  

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT: Kate Hartig
(703) 903-3802
Kate_Hartig@FreddieMac.com

FAQ

What is Freddie Mac's renter credit building initiative?

Freddie Mac's renter credit building initiative aims to help renters establish and improve their credit scores by reporting on-time rent payments to major credit bureaus.

How many households are enrolled in Freddie Mac's credit building initiative?

Over 150,000 households are currently enrolled in Freddie Mac's credit building initiative.

What criteria must vendors meet to join Freddie Mac's initiative?

Vendors must report only on-time payments for free, ensure credit for up to 24 months of past rental history, avoid negative credit impacts, and protect renters' privacy.

When was Freddie Mac's credit building initiative launched?

The initiative was launched in November 2021 in partnership with Esusu.

What is the goal of Freddie Mac's credit building initiative?

The goal is to make on-time rent reporting a standard practice in the industry to help renters improve their financial health.