Esusu and Fannie Mae Enable Over 22,000 Renters to Establish Credit Scores
HARLEM, N.Y., Nov. 14, 2023 (GLOBE NEWSWIRE) -- Esusu, the leading financial technology company revolutionizing rent reporting and data solutions for credit building, announced new milestones from the company’s collaboration with Fannie Mae today. The latest data underscores the far-reaching impact on more than 224,000 renters enrolled with Esusu, resulting in the creation of 22,155 new credit scores for previously credit-invisible renters and unlocking billions of dollars in capital for low-to-moderate income renters.
In September 2022, Fannie Mae introduced the Positive Rent Payment pilot to enable renters to build and establish their credit scores through on-time rent reporting. The initiative also helps multifamily property owners by reducing tenant turnover and lowering eviction rates. Fannie Mae encouraged its owners/operators to adopt positive rent reporting by covering the cost of the service for one year.
Data through September 2023 shows over $2.79 billion in new credit tradelines have been created due to credit score enhancements achieved by renters who live in multifamily properties backed by Fannie Mae loans and enrolled through Positive Rent Payment with Esusu. A survey of renters revealed that 79% recognized the potential for greater financial opportunities with higher credit scores. Esusu examined an anonymized data set for those enrolled in the pilot and found that, since being enrolled in their pilot, participating renters have seen economic advantages including:
“In our ongoing pursuit of an equitable society, it is deeply gratifying to witness the significant progress achieved through our partnership with Fannie Mae," stated Wemimo Abbey and Samir Goel, co-founders and co-CEOs of Esusu. "Together, we've witnessed more than 22,000 renters establish credit scores. This initiative has granted countless renters access to high-quality auto, home, and student loan products, elevating their financial prospects. The journey has only just begun, and we eagerly anticipate further expansion in access to financial resources, propelling us towards a future marked by greater financial equity for all."
"Our partnership with Esusu is not just a collaboration but a profound extension of our commtment to our residents. It serves as the lynchpin in our resident satisfaction strategies and helps drive success at our properties,” said Managing Partner of Comunidad Partners, Antonio Marquez. “Our communities are marked by reduced turnover and prolonged loyalty, which has transplanted into durable demand and compelling property performance for us. We are honored to be partnered with Esusu to support this mission.”
Avanath, a property owner in the Fannie Mae Positive Rent Payment pilot with Esusu, has seen 70% of its residents experience tangible credit score improvements during their enrollment, boasting an impressive average increase of 35 points as of June 2023.
“Avanath's partnership with Esusu epitomizes our unwavering dedication to innovation, the empowerment of our residents, and the pursuit of sustainable, affordable housing solutions,” said Daryl Carter, the Founder, Chairman, and CEO of Avanath. “The broadened access to these services is a resounding win-win for both our cherished residents and the entire industry.”
Given the remarkable success of the Positive Rent Payment pilot, we are proud to announce its extension for another year, offering more multifamily owners and operators in buildings financed by Fannie Mae the opportunity to participate through December 2024. This will enable more renters to have their on-time rent payments count towards their credit score. Learn more about the pilot with Esusu here: https://esusurent.com/fannie-mae/.
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