Legacy credit scores are costing lenders the next generation of buyers
Nearly two-thirds, or 62%, are already aware that mortgage lenders are transitioning to newer models incorporating rent and utility data. And 48% expect to be in a position to buy within four years.
“We’ve long advocated for the use of expanded data, including things like rent and utility payments, to help increase access to homeownership,” said Michele Bodda, President of Experian Housing, Verifications Solutions and Employer Services.
“As Gen Z becomes a larger share of the mortgage market, mortgage lenders have an opportunity to differentiate themselves by embracing expanded data and modern scores that support more comprehensive credit evaluation while making the dream of homeownership a reality for more consumers.”
The view from the broker channel has been consistent. Risha Kilaru of OriginPoint, a Northern California-based mortgage professional, previously told Mortgage Professional America that the barriers for younger buyers are often more about readiness than desire, a readiness gap that improved credit visibility could directly address.
Read more: Half of new grads move home as Gen Z redraws the path to ownership | Mortgage Professional
