INDEPENDENCE, Ohio–(BUSINESS WIRE)–In an effort to increase home ownership opportunities for new owners, Nation Loans announced that it would implement Improved Fannie Mae’s Positive Rent Payment History. The new feature allows Fannie Mae’s Desktop Underwriter® (OF®) to use Asset Verification Reports (AVRs) to identify recurring rent payments to potentially improve the credit score of potential first-time home buyers.
This is a positive-only change to the risk assessment for a homebuyer. Rent payments missing from the asset report will not be charged to a homebuyer. Desktop Underwriter will attempt to identify consistent payment amounts of $300 or more per month for rent from the 12 months of transaction data appearing on the VOA. In the short time that Nations Lending used this new feature, the company improved loan eligibility recommendation by 40% for loan applications with a VOA report for the previous 12 months.
“At Fannie Mae, we believe that including a positive rent payment history in the automated mortgage application process is an important step towards breaking down barriers to homeownership,” said Cyndi Danko, Senior Vice President of Fannie Mae and Director of Credit for Single Family Families. “The response has been overwhelmingly positive, and many of our housing industry partners have leaned in to support the program. We welcome additional lenders who embrace this option and make it available to potential first-time home buyers. »
“Incorporating rent payments into our risk assessment checks will help more Americans achieve the dream of buying their first home,” said Jeremy Sopko, CEO of Nations Lending. “Many landlords do not report rent payment history to credit reporting agencies, which negatively affects tenants. By analyzing rent payment history, we can help tenants get timely rent payments. »
Since its inception in 2003, Nations Lending has become one of the fastest growing independent lenders in the country. It retains nearly 100% of its mortgage servicing rights – the only way to ensure a quality end-to-end experience for borrowers.
For more information, please visit www.nationslending.com.
About Nation Loans
Nations Lending Corporation™ is one of the fastest growing mortgage lenders in the United States. Based in the Cleveland, Ohio area, it is licensed to lend in all 50 states and employs more than 1,200 people at its headquarters and 134 branches across the United States. The company makes its mission of “home loans. made human. ™” an integral part of its mortgage experience, offering tailored customer service and a variety of programs to meet the needs of any homebuyer: FHA, VA, Conventional , Jumbo, USDA, and more. Nations is an agency direct lender with Fannie Mae, Freddie Mac and Ginnie Mae and retains mortgage servicing rights to 96% of the loans it originates. The company is a two-time winner of the Inc. 5000, which lists the fastest growing private companies in the country. Nations was named one of the Top 100 Lenders by National Mortgage Professional Magazine; six-time winner of the Scotsman Guide’s Top Mortgage Lenders Award; and winner of Fortune magazine’s Top Workplaces for Millennials. Nations is consistently ranked among the top IMBs by National Mortgage Professional and Mortgage Executive Magazine. For more information, visit www.NationsLending.com.