An article from the Consumer Financial Protection Bureau (CFPB) sheds light on the challenges around rental debt collection that impact millions of renters nationwide. With over 4.5 million households behind on rent, rental debt has become a major barrier to homeownership for many.

From the article there are two key findings from approx. 1,700 complaints filed from Aug. 2023 – Dec. 2023:

Improper Debt Collection: Debt collectors are sometimes charging inflated fees or attempting to collect based on illegal rent increases.

Credit Reporting Concerns: Rental debt is commonly reported to credit bureaus, which can lower credit scores and create hurdles for those looking to qualify for a mortgage.

Even if a renter’s credit score meets the minimum requirements, unpaid rental debt can still impact their chances in the mortgage approval process. No mortgage lender wants to take on the risk of unpaid housing debt.

The CFPB is working to address these issues, but for many renters, the need for support is immediate. Here at Epic Mortgage, Mike Stoy and his team can guide clients through the complexities of rental debt and help boost their loan readiness. Our mission is to make the path from renting to homeownership as smooth as possible!

If you know someone facing rental debt challenges? Send them our way, and we’ll help them explore their options for becoming homeowners. Let’s move from renting to owning together!

Reach out to Mike Stoy, Senior Loan Officer at Epic Mortgage in Milwaukee, to get started today! Visit www.mikestoy.com for more information.