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    More Tenants Can Now Add Rent Payments to Their Credit Score

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    Policymakers view the reporting of an on-time pattern as a way to reduce disparities in homeownership.About a third of American households rent, yet in most cases their credit score doesn’t reflect their on-time payments.That’s beginning to change. Renters can increasingly choose to have their timely monthly payments reported to the credit bureaus, with the goal of improving their credit profile to qualify for loans.A bevy of third-party services now offer consumers the option of having their on-time rent payments reported to one or more credit bureaus. The bureaus — Equifax, Experian and TransUnion — can add rent payments to loan data to enhance the credit reports and credit scores that lenders use to evaluate potential borrowers.The services typically report only on-time payments, but consumer experts recommend checking the details first. The reporting of late payments, such as when tenants withhold rent to protest their living conditions, may be a drawback to enrolling, consumer experts say.Zillow, the real estate website, became the latest entrant in the rent-reporting market this month. Some options, like Zillow’s, are available to renters whose landlords or property managers use the company’s rental management system to process payments. Others, like the service offered by Self Financial, are available directly to renters.As it stands, few landlords routinely report rent payments to credit bureaus. Traditionally, only lenders have reported to the bureaus, and rent isn’t considered a loan. Fewer than 5 percent of the roughly 80 million adults who live in rental housing had rental data in their credit files, and it was mostly negative data from missed payments, according to the Urban Institute, a nonprofit research group focused on advancing upward mobility and equity. (Negative rent information can end up in credit files if a landlord reports delinquent accounts or sends them to a collection agency.)But in recent years, policymakers have been exploring whether consumers can benefit from having on-time rent payments included in credit scores, just as payments for mortgages, car loans and credit cards are. Reporting on-time rent payments is viewed as a way to reduce disparities in homeownership.Fannie Mae, the quasi-governmental home finance giant, began a pilot program in 2022 using three financial technology companies that report on-time payments from thousands of renters in multifamily buildings to the credit bureaus. Fannie Mae reported in November that its data “shows a trajectory toward better financial health for many renters.” Well over half the participants increased their credit scores. Those who already had a credit score, and saw an improvement, had an average increase of about 40 points. (Scores range from 300 to 850.) The pilot has been extended to the end of this year.TransUnion has been able to include rent payments in its credit reports since 2016 and has seen increasing interest from property managers, said Maitri Johnson, vice president of tenant and employment screening at the credit bureau. The company’s data show that rent reporting is particularly helpful to consumers who were “unscorable,” meaning they had no or little credit history, Ms. Johnson said.Ariel Nelson, a staff attorney with the National Consumer Law Center, said consumers should be cautious. Reporting on-time payments can make sense, she said, for people who are able to consistently pay on time and may be renting temporarily while saving to buy a home.But there can be risks, particularly for lower income tenants who may struggle to pay on time, she added. If a tenant opts into reporting and pays on time for several months but then hits a rough patch and falls behind, the late payment isn’t reported. But lenders might interpret the absence of rental information on the credit report for a month or two as a negative, Ms. Nelson said.(Fannie Mae said that separate from the pilot, lenders could use its automated underwriting system to supplement their credit evaluations of first-time home buyers by including rent data, and that missing rent payments weren’t counted against the borrower.)The general industry approach so far is to give renters a choice about whether to have their payments regularly reported, and to report only on-time payments.As the practice becomes more widespread, landlords could eventually require reporting of rent to credit bureaus, Ms. Johnson said. The requirement would probably be disclosed during the negotiation of the lease agreement.The reporting of negative information could affect tenants who might want to withhold rent as a way to force landlords to maintain or repair buildings, Ms. Nelson said. If landlords report the withheld payments, tenants may feel pressured to pay to avoid harming their credit. A recent news report suggested that has happened in New York City.Zillow’s service deems payments on time if they are received within 30 days of the due date, said Amy Wipfler, senior product manager for social impact at the company. Payments made after that aren’t reported. The new service is available to “tens of thousands” of renters, she said.Currently, Zillow’s service reports just to Experian. If a participant applies for a loan with a lender that uses one of the other credit bureaus, the positive rent payments won’t have an impact. Zillow aims to add the other credit bureaus, Ms. Wipfler said. (Other services, like Esusu and Self Financial, report to all three.)Here are some questions and answers about using rent payments to help credit scores:Are all credit scoring systems able to factor in rent payments?No. Only the latest, but not yet widespread, versions of credit scoring systems from FICO, the data analytics company, can incorporate rent data, said Ethan Dornhelm, the company’s vice president for scores and predictive analytics. The FICO 8 version, an older but widely used model, cannot factor in rents, he said. All versions of VantageScore, a scoring model owned by the major credit bureaus, are able to factor in rent payments, a spokeswoman, Sarah Cain, said in an email.Is there a charge for rent reporting services?That varies. Some services are free for both landlords and tenants, while others may charge one-time or monthly fees. (Some are free for new rental payments but charge for reporting prior rental history.) It may not be worthwhile for consumers who already have top-tier credit scores to have their rent reported, since they would probably see incremental benefits from an even higher score, Ms. Johnson at TransUnion said.What are other ways to build credit?Options for building credit if you have a scant credit file or marred credit include opening a “secured” credit card. You typically make a deposit and get a line of credit up to that amount, and your payment history is reported to the credit bureaus. Some community banks and credit unions offer “credit builder” loans. The money you borrow is held in a bank account while you make payments, which are reported to credit bureaus. Once you have paid the loan amount, you get access to the funds. More

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      Should Biden Announce That He Won’t Run Again?

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      More from our inbox:Solving New York City’s Housing ShortageSolace at the Beach Pool photo by Evan VucciTo the Editor:Re “Hey, Joe, Don’t Give It a Go,” by Maureen Dowd (column, Aug. 7):I can’t agree with Ms. Dowd that President Biden should declare himself a lame duck to protect his legacy. I can’t think of anything more out of his character than that. He doesn’t do things for himself. The nation’s well-being, not his legacy, is his central concern.Ms. Dowd begins by speaking of Ruth Bader Ginsburg, who “missed the moment to leave the stage,” and suggests that Mr. Biden’s time has come to leave. Good lord, he hasn’t even completed two full years in office yet. He has things to do and a nation to serve and protect. Just imagine how luckless he would be if he tried to do that as a lame duck.There’s time for him to leave, but this isn’t it. Maybe in the primaries, but maybe not.Roger CarlstromYakima, Wash.To the Editor:The Biden interregnum will be well remembered for bringing decency and sanity back to the Oval Office. He has come to be that “calming force for a country desperately in need of calming.” However, running for a second term at age 81 ignores the infirmities of age.If he should choose not to run again he would not become irrelevant; he would become a revered elder statesman who lived out his last hurrah on his own terms with renewed dedication and admirable resilience as manifested in his long career of public service. I am reminded of a quote from Orson Welles, who once said, “If you want a happy ending, that depends, of course, on where you stop the story.”Precision timing turns on recognizing the arc of one’s story and heeding the foreshadowed warnings with grace and knowing acceptance.Barbara Allen KenneyPaso Robles, Calif.To the Editor:The insistent chants for President Biden to announce that he will not run for a second term because he will be too old in 2024 is ageism pure and simple.If the “old dude in the aviators has shown he can get things done, often with bipartisan support,” as Maureen Dowd states, why not let him continue trying?Even if Mr. Biden is having second thoughts about re-election, why should he declare himself a lame duck president before it is necessary to do so? Does Ms. Dowd seriously believe that if he takes himself out of the running that “over the next two years he could get more of what he wants and then step aside?” Why don’t we ask the Republicans if they will cooperate?Mr. Biden has shown patience and perseverance. It comes with age and experience. Let us not sideline an old man just yet just because the cry is for “new blood.”Let Mr. Biden decide if and when to declare his candidacy.Eleanor M. ImperatoManhasset, N.Y.To the Editor:Thank you, Maureen Dowd, for saying what needs to be said. President Biden, I have been a longtime supporter and fan. What better opportunity for you to prove you’re not driven by ego but by principle? There is much still for you to accomplish. Make the most of this time. Show the American people a president who, untainted by political aspirations, is making decisions solely based on what’s best for the country.Diane LoveNew YorkTo the Editor:OK, let’s just say for the sake of argument that Maureen Dowd is right and Joe Biden shouldn’t run again. Then who do the Democrats have? We need somebody not just competent and visionary, but electable. That was my reasoning for voting for Mr. Biden in 2020.The Republicans obviously have Donald Trump and Ron DeSantis champing at the bit. I don’t think either of them would have a problem energizing the base.So if not Joe, who do we have?Dylan TaylorPhiladelphiaTo the Editor:Maureen Dowd has written what had to be said. Joe Biden must not run again, and he now has the perfect excuse to make his exit.Ruth Bader Ginsburg was a great example of overstaying one’s welcome. If only she’d retired when she had the best excuse in the world — her failing health — we might not today be living with this dystopian Supreme Court. Dear, dear President Biden: Please remember this and think of the scary consequences of your losing in 2024.It’s time for a younger candidate to take the reins of the Democratic Party. But he or she will need a couple of years to get his message out, and that means that Mr. Biden must announce now that he plans to be a one-term president.I love you, Joe, but you’ve given your all for the party, and it’s time to go.Clare ChristiansenOak Harbor, Wash.Solving New York City’s Housing ShortageTaylor Sicko moved out of New York City during the pandemic after she lost her job and was unable to afford rent. She has a new, remote job — based in New York — but she doesn’t want to move back.Rachel Woolf for The New York TimesTo the Editor:Re “Rising Rents, and No Cure on Horizon” (Business, Aug. 2):Your excellent story rightly diagnoses a major crisis facing the city — a decades-long failure to build enough housing to meet demand — but understates the responsibility that some local elected officials and anti-development activists bear for allowing it to spiral out of control.As noted, the city has committed a record $22 billion for housing — far more than any other city in the country. But all the money in the world won’t build the number of homes we need if local elected officials continue to block zoning changes that add additional density in their districts and NIMBY groups file frivolous lawsuits that delay new construction year after year.The City Council should work with the mayor to implement common-sense zoning changes and embrace opportunities to build new housing in their neighborhoods. Survey after survey has shown that the vast majority of New Yorkers are desperate for more affordable housing that will allow them and their children to stay in the city, and to assure we can retain the talented, diverse work force that makes the city the greatest in the world. It is time we made their wish a reality.Carl WeisbrodNew YorkThe writer is former chairman of the New York City Planning Commission.To the Editor:While elected officials are fighting tooth and nail to rezone neighborhoods, thousands of unoccupied rent-stabilized units sit vacant in New York City. Once a rent-stabilized unit becomes vacant, landlords are not required to rent out unoccupied rent-stabilized units to new tenants. Landlords are often incentivized to warehouse vacant rent-stabilized units, decreasing the availability of affordable housing in New York City.In the current housing market, applicants are entering rental bidding wars for market-rate units while vacant rent-stabilized units sprinkled across the five boroughs collect dust.Dena RosmanNew YorkSolace at the Beach To the Editor:Re “The Joys of Swimming While Fat,” by Phoebe Wahl (Op-Art, Aug. 13):Thank you so much for publishing a graphic depiction of a fat mommy who “risks” showing her body, her “redness and chafing and sweat” at the beach. She finds solace and peace swimming where she feels totally herself. Her struggles with internalized shame float away. No small feat!I can’t wait to share this with my life issues group for women who binge eat as a survival skill. Well put, Ms. Wahl. As women we need to stand up to “the burdens of patriarchy and society’s judgments” all the time!Arden Greenspan GoldbergNew YorkThe writer, a licensed clinical social worker, is a certified eating disorder specialist. More

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      Rent Board Votes for 3.25% Increase on One-Year Leases

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      Two million New Yorkers who live in rent-stabilized apartments will be affected by increases approved at a raucous meeting of the Rent Guidelines Board.Good morning. It’s Wednesday. We’ll look at rent increases that are on the way for two million New Yorkers. We’ll also catch up on the final debate between the Republicans running for governor.Seth Wenig/Associated PressTo the list of items that cost more in 2022 than in 2021, add rent in New York City.As expected in a year when other consumer staples like food and gasoline have surged, the panel that regulates rents in the city approved increases for tenants — 3.25 percent on one-year leases and 5 percent on two-year leases.Housing advocates had pressed for a rent freeze or even a rollback, while landlords had argued that buildings would inevitably deteriorate unless rental income kept pace with expenses. The increases cover about one million rent-stabilized homes, which account for about 28 percent of the city’s housing stock and 44 percent of the rentals.The rent board session was raucous, with audience members blowing whistles and shouting slogans like “housing is a human right.” When the board chairman, David Reiss, outlined the reasons for the increases, dozens of people stood up, turned their backs to him and chanted, drowning him out.The 5-to-4 vote was a setback for tenants, as Mayor Eric Adams acknowledged in a statement after the vote. He said the increases would “unfortunately be a burden to tenants at this difficult time — and that is disappointing.” But he also expressed sympathy for small landlords who he said “are at risk of bankruptcy because of years of no increases at all.”The vote by the board was the first since Adams took office, and as my colleague Mihir Zaveri writes, the board took a different approach than it had under Adams’s predecessor, Bill de Blasio. The highest annual increases during his time in City Hall were 1.5 percent on one-year leases and 2.75 percent on two-year leases.But with the average rent on a newly leased Manhattan apartment reaching $4,975 in May — up 22 percent from 2021, according to the real estate firm Douglas Elliman — the rent-stabilization system has become a crucial source of affordable housing. The median monthly rent for rent-stabilized apartments is $1,400, according to a recent city survey, compared with $1,845 for unregulated homes. And the median income for people living in rent-stabilized homes is about $47,000, compared with $62,960 in unregulated homes.The last time there was a significant increase — 4 percent on one-year leases and 7.75 percent on two-year leases — was in 2013, the last year de Blasio’s predecessor, Michael Bloomberg, was in office.But the board has allowed far higher increases in the past. In July 1980, at a time of high inflation and a gas crisis, the board sanctioned 17 percent increases on three-year leases on apartments where the landlord provided heat. For apartments where tenants provided heat, the figure was 9 percent.On Tuesday Adán Soltren, whom Adams appointed as one of two tenant representatives, voted against the increases. He called the decision to support them “unjust” and told his colleagues, “Your decision will result in millions of people suffering while corporations and investors continue to profit.”Christina Smyth, one of two board members representing landlords, called the increases inadequate. “We are risking the decay of rent-stabilized housing,” she said.WeatherExpect a chance of showers with temperatures near 70. At night, showers and thunderstorms are likely with temps in the mid-60s.ALTERNATE-SIDE PARKINGIn effect until July 4 (Independence Day).The latest Metro newsCharles Fox/The Philadelphia Inquirer, via Associated PressWildfires: The Mullica River fire in Wharton State Forest in South Jersey has burned about 13,500 acres, threatening to become the state’s largest fire in 15 years.New Jersey hoopers: Although New Jersey was home to some of basketball’s greats, historically it has struggled to escape New York’s shadow. But a wave of rising stars in boys’ basketball could shift the trend.Arts & CultureCurtains up, masks off: Broadway theaters will be allowed to drop their mask mandates starting July 1. The Broadway League described the new policy as “mask optional” and said it would be re-evaluated monthly.Best in show: The Westminster Kennel Club Dog Show is underway — not at Madison Square Garden but, for a second year, on the sunny grounds of a Gothic Revival mansion in Tarrytown, N.Y.The Stonewall uprising: The Stonewall National Monument Visitor Center, which will open in 2024 as the first in the national park system devoted to the gay rights movement, will commemorate the 1969 Stonewall uprising and its legacy.DiscoOasis: Roller skating is enjoying another flash of popularity. DiscOasis in Central Park sets itself apart from New York’s other rinks with production values and theatricality.Republican candidates for governor spar againPool photo by Brittainy NewmanIn an hour that turned increasingly contentious, the four Republicans running for governor of New York appeared together one last time, making their case before the primary next week.They spent much of the hour, broadcast on the conservative news channel Newsmax, playing to the Republican base, describing their devotion to former President Donald J. Trump and their disdain for Gov. Kathy Hochul, the incumbent Democrat they hope to replace.“Kathy Hochul is going to get fired,” declared Representative Lee Zeldin, a four-term congressman from Long Island who was chosen as the party’s designee at a convention in March. “I’m looking forward to removing her from this office.”Zeldin was flanked on the stage of the Kodak Center in Rochester, N.Y., by the three other Republicans who also want to run against Hochul — Rob Astorino, a former Westchester County executive; Andrew Giuliani, the son of former Mayor Rudolph Giuliani of New York City; and Harry Wilson, a corporate turnaround specialist who, as an official on President Barack Obama’s automotive task force, helped take General Motors in and out of bankruptcy.After about 40 relatively restrained minutes, the sniping intensified, with Giuliani calling Zeldin “a flip-flopper” and Zeldin saying Giuliani’s “claim to fame” was that the actor Chris Farley had mocked him on “Saturday Night Live” 30 years ago “for being,” Zeldin said, “an obnoxious kid.”As the candidates talked over each other, the moderator, Eric Bolling of Newsmax, tried to reassert control. “Gentlemen, I love the heat, I love the heat,” he said.Giuliani — who has said that he sees his father and Trump as models for the kind of governor he aspires to be — was making his first in-person debate appearance. In the first two Republican debates, hosted by stations in New York City, Giuliani, 36, took part from a separate location because he was unvaccinated. But on Tuesday, he was on the same stage.Talking about his time in the Trump administration, he said, “When I think about the work I did with President Trump in the White House, that’s the kind of change that we need in Albany.”Zeldin, who was once considered a moderate, has also been a Trump stalwart, though in a debate on Monday night he stopped short of saying the 2020 election had been stolen. On Tuesday in Rochester, he seemed more attentive to Trump’s signature policies, saying he believed that the former president’s border wall should be completed.Asked what they would do to reduce crime, Giuliani and Zeldin said they would fire Alvin Bragg, the Manhattan district attorney. Wilson said it was “unacceptable for New Yorkers to live on unsafe streets” and said that “an extended family member” had been killed recently “by someone out on cashless bail” — his term for a change in state bail law that Democrats in Albany pushed through in 2019 and Republicans want rolled back.Giuliani said that on his first day as governor, he would tell the leaders of the Assembly and the State Senate, both Democrats, that without a “full repeal” of the bail law, “I’m not funding anything in our upcoming budget negotiations.”Bolling asked the candidates about inflation, abortion and Medicaid fraud. Wilson promised deep reductions in property taxes and income taxes, as did the other candidates. And despite the recent racist massacre in Buffalo, none of the four supported any new gun control measures, with Zeldin saying the state’s gun laws “go too far as is.”METROPOLITAN diaryOverheardDear Diary:I was on the M104, and a woman was talking loudly on her phone. She was explaining to whomever she was talking to about how she had flirted with a guy to make her ex jealous.At one point, her voice became a mumble, and the man sitting across from her interrupted.“Excuse me, can you please raise your voice?” he said. “It sort of dropped and we couldn’t hear what happened.”The other passengers applauded.— Ivy ManskyIllustrated by Agnes Lee. Send submissions here and read more Metropolitan Diary here.Glad we could get together here. See you tomorrow. — J.B.P.S. Here’s today’s Mini Crossword and Spelling Bee. You can find all our puzzles here.Melissa Guerrero More