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. Itâ€™s something they refer to as alternative data.
â€œUntil 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 consumerâ€™s other financial obligations like residential mortgages, auto loans, and credit card payments,â€ said Matt Martin, chairman and founder of Sperlonga, in a statement. â€œProperty 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.