Most people dislike their Homeowner Associations…now they will have a greater reason why!
Credit data aggregator Sperlonga has agreed to become the first company to furnish HOA payment and account status data to Equifax, one of the three major credit-reporting agencies. Reporting will be tested in August with a full rollout planned in October. According to the Community Association Institute, homeowner associations and property management companies collect approximately $70 billion in HOA payments each year through at least 333,000 community associations.
For years, experts in the credit-scoring industry have talked about the value of adding things like rent payments and utility bills to credit scores as a way of giving more people access to credit. It’s something they refer to as alternative data.
“Until now, HOA payments have gone largely unreported to the national credit-reporting agencies. Our service will help elevate association payments to the same level of importance as the consumer’s other financial obligations like residential mortgages, auto loans, and credit card payments,†said Matt Martin, chairman and founder of Sperlonga, in a statement. “Property owners that pay HOA fees on time should begin to see the similar impact to their credit reports as they would with other payment obligations traditionally found in a credit report.â€
This is not going to be great for people.
Corey
http://www.builderonline.com/newsletter/hoa-payments-can-now-be-reported-to-credit-bureaus_c
