Rent-payment reporting brings in 15K mortgage borrowers, provider says

A collaboration between rent-reporting platform Esusu and a leading trade group has helped bring in more than 15,000 new mortgage originations over its first year in operation, representatives say.

Efforts to incorporate new rent underwriting criteria contributed to a total of 15,302 home loans totaling $6.9 billion, data from the New York-based financial technology platform and the National Rental Home Council showed.

Since they began working together in July 2023, 17,121 consumers also managed to establish credit scores for the first time, the businesses also said. Included among the several single-family rental firms and builders delivering payment data to Esusu are Brandywine Homes, Evergreen Residential, Simplyhome and Promise Homes.

"By embracing rent reporting, we are laying the foundation for a housing landscape that ensures all residents have the opportunity to achieve their financial goals," said David Howard, CEO of NRHC. 

The latest result comes in a little under three years since Fannie Mae first announced it would begin allowing lenders to factor in consumer rent payments in its underwriting system as it sought to open up homeownership opportunities. Freddie Mac followed in 2022 in cooperation with Esusu, with the latter transmitting positive rent data to the government-sponsored enterprise. 

Similarly, Esusu, along with two other platforms, embarked on a pilot project two years ago to send rent-payment data to Fannie Mae through its Positive Rent Payment program. The pilot was extended last year to continue through the end of 2024.   

"We are committed to deepening our partnership with NRHC to unlock transformative economic opportunities for renters through our robust platform for renter financial health," said Esusu co-founders and co-CEOs Samir Goel and Wemimo Abbey. 

"The profound early outcomes from the Esusu and NRHC partnership serve as a resounding reminder of the prosperity that is possible when we invest in and strengthen our communities," they said. 

Alongside the number of new credit files created, the Esusu-NRHC initiative helped raise scores by an average of 39 points, they said. The improved outcomes also led to a total of $10.3 billion in capital access for participants in the program, with the total including mortgage originations. 

"This partnership has unleashed the power of data to bridge the racial wealth gap and provide equitable financial access for all. Over 60% of our residents have achieved an average credit score improvement of over 40 points," said John Isakson, CEO of ARK Homes for Rent, one of the other companies involved in the partnership.

Thanks to the information provided by consumers, 656 households were saved from eviction as well, with nearly $1.5 million in rent relief offered, they said.  

Other data showed 55,635 new auto applications approved and 18,817 student loans processed among participants in the program. 

Esusu was established in 2018 and raised $145 million in capital through six funding rounds, according to Crunchbase. Its last Series B funding came in early 2022 in a round that included backers, such as Softbank and Serena Williams.