Rental Pay History Should Be Used to Assess Creditworthiness of Mortgage Borrowers
Urban Institute, Apr. 17, 2018–Laurie Goodman, June Zhu
The authors say access to mortgage credit remains overly tight in part because we are not measuring the credit risk of renters appropriately. For many renters, the most significant financial commitment is paying monthly rent, yet traditional credit scoring does not account for borrowers who meet their commitment month after month.
