HARLEM, N.Y., April 05, 2023 (GLOBE NEWSWIRE) -- Esusu, the leading financial technology company advancing rent reporting and data solutions for credit building, announced new milestones from the company’s work with Freddie Mac today. The new data exemplifies the widespread impact of the industry-leading collaboration, offered to over 240,000 housing units and has led to the creation of 27,393 new credit scores for previously credit-invisible renters and unlocked billions of dollars in capital for low-to-moderate income renters.
Esusu and Freddie Mac launched their work together in 2021 to enable renters to build and establish their credit scores through on-time rent reporting. The effort can also help property owners by reducing tenant turnover and lowering eviction rates. Driven by the firms’ shared objective of increasing equity in multifamily housing, this initiative has helped increase residents’ ability to boost their economic mobility through things like auto loans, student loans and mortgages. This impact has transcended housing and broadened access to various forms of high-quality financial products, providing greater financial resiliency nationwide. To date, over $2 billion in capital access has been created due to credit score enhancements achieved through on-time rent reporting for properties enrolled through the Freddie Mac initiative.
“It is humbling to see our goal of making the American Dream accessible come to fruition, and we are immensely proud to see the tangible effects that our collaboration with Freddie Mac has had for residents and property owners alike,” said Wemimo Abbey and Samir Goel, co-founders and co-CEOs of Esusu. “Together, we’ve witnessed over 27,000 renters establish credit scores and hundreds of thousands see credit improvement. This has enabled many renters to access quality auto, home, and student loan products for the first time to better their financial futures. This is just the start of this initiative’s potential impact and we look forward to continuing to expand access to financial tools and working together towards creating greater financial equity.”
Renters who have seen their credit scores improve as a result of their on-time rent payments reflected in their credit report may also be benefiting from increased access to lines of credit with more favorable terms. Esusu has examined an anonymized data set for those enrolled in the initiative and found that, since being enrolled, participating renters have seen:
- An average credit score increase of 46 points
- Over $2.48B in capital access created
- Over $1.4B in mortgage loans received
- 16,900 auto loans, 3,393 mortgage loans, and 5,618 student loans accessed
“Working together with Esusu, our initiative is helping build credit files for tens of thousands of renters nationwide,” said Corey Aber, vice president of Multifamily Mission, Policy & Strategy for Freddie Mac. “We have a tremendous opportunity to build on this work and establish an industry standard of on-time rent reporting, which can improve the financial circumstances of even more renters.”
“Last year, Berkadia signed an agreement with Esusu that allows us to extend a powerful property performance-enhancing solution to our clients,” said CEO of Berkadia, Justin Wheeler. “This tool supports the owners and operators that we work with daily and has had an even more positive effect on renters. The initiative with Freddie Mac has expanded Esusu’s, and Berkadia’s, offerings and made a tremendous impact.”
“Esusu’s credit building program has been a valuable offering to our residents, producing significant results. Since beginning our partnership in 2022, we’ve helped residents establish and improve credit scores throughout our communities,” said Robert Friedman, President of Harbor Group Management Company. “As we seek to provide our properties’ residents with practical resources and tools, we were able to easily scale Esusu’s program across 179 properties within our portfolio, and intend to implement the program at future properties under our management.”
In addition to earning credit improvement, renters also have access to the Esusu Renters Marketplace, where they have the opportunity to access other financial literacy and credit education courses – including Freddie Mac’s CreditSmart – to help support their path to financial independence and success. Learn more about Esusu’s offerings.
About Esusu
Esusu is the leading financial technology platform that leverages data solutions to empower residents and improve property performance. Esusu's rent reporting platform captures rental payment data and reports it to credit bureaus to boost credit scores. This allows renters to build and establish their credit scores while helping property owners mitigate against initiating evictions, powered by differentiated data and insights. Founded in 2018, Esusu reaches over 3.5 million rental units across all 50 states in the United States. Learn more at www.esusurent.com and follow us on Instagram @myesusu and on Twitter @getesusu.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
About Berkadia®
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com.
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of approximately $20 billion, including 58,000 apartment units in the United States and 5.0 million square feet of commercial space throughout the United States and the United Kingdom. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv.
