FHA issued Mortgagee Letter 2022-17, updating TOTAL Mortgage Scorecard to allow for utilization of positive rental payment history as a credit risk assessment for first time homebuyers. Per the Mortgagee Letter, a mortgagee may submit a transaction to TOTAL Mortgage Scorecard indicating a positive rental payment history provided:
- the transaction is a purchase;
- at least one borrower is identified as a first time homebuyer;
- the minimum decision credit score is 620 or greater; and
- at least one borrower has a documented history of a positive rental payment history with monthly payments of $300 or more for the previous 12 months.
This guidance may be implemented for TOTAL scoring events on or after October 30, 2022, and for case numbers assigned on or after September 20, 2021.
Click to view the FHA Info 2022-86: https://www.tenaco.com/wp-content/uploads/2022/09/FHA-Info-2022-86.pdf
Click to view the FHA Mortgageee Letter 2022-17: https://www.tenaco.com/wp-content/uploads/2022/09/FHA-Mortgagee-Letter-2022-17-09-27-22-1.pdf
