HousingWireHousingWire
Blue Sage Solutions has integrated Freddie Mac’s new policy on positive rental payment history into its digital lending platform, allowing lenders to factor on-time rent payments into mortgage applications.
The change comes as part of a broader effort to expand access to homeownership, particularly for renters with limited traditional credit histories.
Freddie Mac’s Loan Product Advisor — a credit assessment tool for conventional loans — recently began including rental payment history in its evaluations.
“Our collaboration with Freddie Mac underscores our commitment to leveraging innovative solutions that promote home affordability,” said Carmine Cacciavillani, founder and chairman of Blue Sage Solutions.
“By integrating rental payment history into our Digital Lending Platform, we’re empowering lenders to make more informed decisions and help more borrowers achieve their dreams of homeownership.”
Christina Randolph, vice president of distribution at Freddie Mac, described Blue Sage as a key technology partner in rolling out the updated credit evaluation criteria.
“Our network partners such as Blue Sage are critical in the distribution of Freddie Mac’s offerings,” Randolph said. “Blue Sage’s support of borrower provided rental history is consistent with our commitment to support more borrowers with their homeowner journey.”
The move follows research that suggests positive potential impacts when factoring rent payment history into mortgage underwriting.
According to the Aspen Institute, the gap between renters and homeowners is stark. Renters have a median household income of about $49,000 compared to $92,000 for homeowners. The median net worth of homeowners is roughly $400,000, compared to $10,000 for renters.
By incorporating rent history, Blue Sage said the mortgage process may become more inclusive for first-time homebuyers and underserved populations.
