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Esusu Financial Inc. today announced a new collaboration with Fannie Mae to help renters build credit by incorporating on-time rent payments into renter’s credit scores as part of its strategy to advance equity in the housing market. Through this relationship, Fannie Mae will incentivize its borrowers to report on-time rental payments to the three major credit-reporting bureaus through Esusu’s rent reporting platform. The platform will automatically unenroll renters when missed payments occur, preventing harm to those who struggle financially.

Starting today, every borrower who enrolls will get discounted fees moving forward in addition to the first full year of service fees for Esusu’s platform being covered by Fannie Mae. Together, the program’s participants’ multifamily property owners will boost rent payments made on time, cut down on evictions, and—most importantly—scale their Environmental Social Governance (ESG) initiatives in a way that is transparent and profitable.

“Fannie Mae is committed to implementing scalable solutions to help renters build their credit history and improve credit scores by providing access to its Multifamily Positive Rent Payment Reporting pilot program,”
“Working with Esusu, we hope to bolster equitable access to credit for individuals and families while adding value for owners and operators.”
                       Michele Evans, Executive Vice President, Head of Multifamily, Fannie Mae.

Less than 10% of renters have on-time rental payment history that is reflected in their credit ratings, which historically means that renting does not help credit building in the same way that a mortgage does. The roughly 44 million rental households in the United States are at a severe disadvantage as a result of this legacy paradigm when trying to establish their credit, which is crucial when looking for other financing choices.

“The reporting of a renter’s positive rent payments to credit bureaus has been shown to have a positive impact on credit scores, and for renters, with no established credit score, it could help them establish a credit history,”
              Jonathan Gross, Vice President – Multifamily Strategy & Impact, Fannie Mae.

For Fannie Mae Multifamily property owners seeking for ways to assist their tenants, Positive Rent Payment Reporting is available. Fannie Mae and Esusu share a long-standing dedication to advancing renter financial access and sustainable housing opportunities as well as to creating a more equitable multifamily housing ecosystem.

“Over the past year, we have seen what Esusu’s rent reporting platform can do for Related Affordable residents to help improve their financial health,”
“We are thrilled to have extended our partnership with this forward-thinking company to better serve all 50,000+ Related Affordable residents.”
                                                Jeffrey I. Brodsky, vice chairman of Related Companies.
“Esusu and Fannie Mae share the common goal of bolstering diverse, successful, and equitable communities,”
“Today, there are still systemic barriers to access for millions of people looking to create a pathway to financial stability. Working with Fannie Mae enables Esusu to create opportunity pathways for those who have historically been deemed credit invisible while also laying the foundation to access other financial instruments that contribute to generational wealth-building opportunities that come from good credit.”
                          Samir Goel and Wemimo Abbey, Co-Founders and Co-CEOs of Esusu.

Fannie Mae borrowers can learn more about enrolling with Esusu and how to gain closing cost benefits and discounts at Esusu Rent.

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