Representative Nikema Williams has reintroduced a bill in the House that would require mortgage lenders to consider consumer-permissioned data, including rental payment history and bank records, for applicants who request it. The legislation aims to broaden credit access for borrowers with limited traditional credit histories.
The bill focuses on removing barriers for renters and others whose creditworthiness may not be captured by standard credit scores. By allowing applicants to voluntarily submit alternative financial data, the measure seeks to qualify more borrowers for home loans.
Mortgage industry groups have expressed mixed reactions. While some see potential for expanding the market, others worry about implementation costs and underwriting complexity. The proposal does not mandate lenders to accept the data as a substitute for credit scores, but rather to consider it as supplementary information.
Consumer advocates argue that reliance on alternative data could reduce discriminatory lending patterns. However, critics caution that without clear standards, lenders might apply the data inconsistently, creating new disparities. The bill's reintroduction sets the stage for renewed debate in a housing market already tight on supply and affordability.
The legislation faces an uncertain path in a divided Congress. Even if passed, it would likely take years for the new data requirements to be fully integrated into industry practices, regulators say.