"More than 2.2 million borrowers saw their credit scores drop by 100 points or more in just a few months, and one in three borrowers making payments are now 90-plus days past due, TransUnion found. One in five borrowers have stopped making payments altogether. The influx of applicants struggling with student loan payments could significantly impact property managers, said Maitri Johnson, executive vice president of TransUnion's tenant and employment screening business."
"Applicants who once met screening thresholds are now falling short. Property managers who rely on credit-based screening are now seeing increased risk among applicants. TransUnion reported that renters with prime credit scores between 661 and 720, once considered low risk, are slipping into riskier categories, with score declines appearing across all tiers. The report also warns that renters' financial stress is fueling an increase in fraud, with some applicants falsifying documents or misrepresenting income."
More than 2.2 million borrowers experienced credit-score declines of 100 points or more within months, and one in three borrowers making payments are now 90-plus days past due. One in five borrowers have stopped making payments altogether. Applicants struggling with student loan payments are increasing pressure on rental markets and causing previously qualified applicants to fall below screening thresholds. Renters with prime scores between 661 and 720 are moving into riskier categories, with declines across all tiers. Financial stress among renters is driving increased fraud, including falsified documents and misrepresented income. Property managers are advised to adapt screening strategies.
Read at www.housingwire.com
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