Easier Mortgage Access: Alternative Data for Credit Assessment
New rules aim to make mortgage loans more accessible for individuals with limited or no traditional credit history. Lenders will be required to consider alternative data, such as consistent rental payments, if requested by the applicant. This could help more people qualify for homeownership.
Key points
Lenders must consider alternative credit information (e.g., rental payments) for mortgage applications if requested and authorized by the applicant.
This alternative data will be treated with the same weight as information from credit reporting agencies, unless found to be misrepresented.
Applicants must be informed of their right to provide additional credit information and the benefits of doing so.
Mortgage underwriting systems must be updated to comply with these new requirements.
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