CoreLogic announced it is working with RentTrack to provide an online rent-payment solution for residents to build their credit as they make their rent or HOA payments online.
CoreLogic Payments combines RentTrack’s payments and reporting platform with the Rental Property Solutions suite of property management tools offered by CoreLogic.
The combination helps residents build their credit, in an area that’s long been needed. Two years ago, Experian published an analysis on almost 20,000 people in government-subsidized housing who pay their monthly rent on time. The survey found that before adding in rental history, 11% of the same had no credit file at all, which makes it extremely hard to get loans. However, once the rental history was included, 59% of that group had prime credit scores, and another 38% had “nonprime” scores, while only 3% were considered subprime.
“CoreLogic recognized the value of the RentTrack resident value approach: build credit as you pay rent,” said Richard Leurig, senior vice president, CoreLogic Rental Property Solutions. “We are extremely excited to offer our clients and their residents the best in rental and HOA payments and reporting.”
“CoreLogic is an ideal partner for RentTrack. They are a recognized, established leader in the property management and HOA space. They innovate and deliver their services on an open, flexible technology platform. That is the definition of a strategic partner for RentTrack,” said Matthew Briggs, CEO of RentTrack.
This summer Experian RentBureau teamed up with Yardi, a provider of real estate software solutions, to release a similar product, launching an interface that would allow renters to build credit history by having their rent payments reported.
The ability to use a variety of methods to build and assess credit continues to expand in the mortgage industry. Fannie Mae made significant progress back in September when it launched Desktop Underwriter Version 10.0, implementing the long-awaited use of trended credit. The change could open up the credit box to potential borrowers previously unable to get a mortgage due to their credit history.