CDIA study of credit reporting
CONSUMER DATA INDUSTRY ASSOCIATION RELEASES STUDY ON THE VALUE OF CREDIT REPORTING IN U.S. | CDIA (cdiaonline.org)
“This study highlights the value credit reports offer to consumers and the entire economy,” said CDIA President and CEO Francis Creighton. “It’s never been more important than right now to better understand how our credit reporting system empowers consumers to fairly engage in the economy. Our study takes a hard-look at how our most vulnerable populations can build credit and gain financial inclusivity. This is critical, fact-based information that policy makers, academics, non-profits and others can use when examining how to address important challenges facing America.”
It is important to share this information at a time when our economy faces unprecedented challenges. Many people are looking for answers to close the gap of inequality and improve financial inclusion. The benefits of the credit reporting system will be evident more than ever during the current economic recovery.
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According to a recent article from CDIA lack of rental payment information being reported to consumer reporting agencies, or not scored by lenders, or both is severely effecting renters access to the financial mainstream.
According to the CDIA article Next Mortgage News highlights this point in a recent story from Laurie Goodman. In this story Goodman says, “I think it’s a big omission that the version of credit scores that are used for mortgage origination includes no rental payment history.” The story points out the new versions of credit score models do try to incorporate rent payment history when it is available. But it is missing most of the time, as landlords don’t have to report this data and the credit bureaus don’t have access to a consumer’s bank account data, which would include rent payments.
Is your tenant rental company trying to fill this gap? M2 Reporter can help you with your Rental Reporting needs with our M2R or M2 Rental 1 programs. Have questions? Contact us today.
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