Event id: 2840207 Event Started: 3/9/2016 7: 00: 00 pm

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Event ID: 2840207

Event Started: 3/9/2016 7:00:00 PM


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>> Hello everyone. I want to welcome you and think you for participating in today's webinar, Rent Reporting for credit building. I am the director of training and consulting for Credit Builders Alliance. Just before we get started, a couple of housekeeping items. If you have questions, type them into the chat box and be able save time at the end of the presentation to go over those. This webinar is being recorded and all participants are on mute. We will definitely save time for those questions at the end. If you are in need of closed captioning services, the link to access that is included in the chat box. With that being said, let's get started.

>> I want to start with a thank you for J.P. Morgan Chase for supporting Credit Builders Alliance to bring you this webinar and nine other webinars this year in collaboration with the financial clinic. We are super excited at CBA about our growing collaboration with the financial clinic which is going on almost 3 years now. We will bring you a total of 10 webinars this year on a number of topics including this one. You can find out more about the webinars and register for them by going to the link listed here. Don't worry, we will send you a PDF of this PowerPoint and the link to the other webinars so you don't have to break this down right now. Topics covered in this series was chosen from the most wanted content areas identified by credit as an asset training participants by trainings occurring over the last two years by post training surveys that get completed. Well we offer those as deeper dives that we couldn't cover in-depth during the one-day training for previous participants, they hopefully also standalone for those on the line that may not have attended our credit as an asset one-day training. As a result there may be repetition for previous training participants. We apologize in advance.

>> Hopefully, it will only serve to refresh and enhances webinar. Doshi enhance this webinar -- enhance this webinar.

>> For those not familiar with CBA, we were created by our nonprofit partners for low and moderate income individuals 14 and regain access to the modern financial system by billing credit and a financial access point. In many cases, the ability to establish good credit is hampered by lack of access. As a result, the theory of change is that a good credit file is essential to achieving and maintaining financial stability. The mission driven nonprofit and other entities are uniquely positioned to help individuals and families build credit as an asset, often as the foundational asset necessary to get and stay ahead. Our credit building community includes almost 500 organizations located in all 50 states to date. It is comprised of a wide variety of organizations, many just like yours including nonprofit lenders, community action programs, United Way and goodwill affiliates, small community credit unions, affordable housing providers, workforce development programs, domestic violence shelters, refugee resettlement agencies, and many more.

>> Note, well, I mentioned we have been working with the financial clinic who we asked to collaborate on these webinars with us because we see it as an ongoing gateway for our entities with expertise in specific areas to serve many of the same organizations to really work together, to better support all of you and the important work you do on the ground. For those of you who are not familiar with them, the financial clinic is both a direct service provider based in New York survey there's New York city -- New York City and --.

>> A major component of what it does is to operate the change community which is a fantastic, online platform for practitioners to learn new tools, strategies, and build skills, coach clients directly, track outcomes, and share with each other with a focus on six key areas, goals, thinking, assets, credit, debt, and Texas. Recognizing the value of leveraging each other's tools, resources, and expertise in believing that we are all better. Our partnership with the financial clinic provides CBA members with access to change machine tools and services including access to the share community on change machine and a credit builders for them we both on there as well. You can find more information about our partnership. Go to our website and search for change machine. You can see more about the partnership and how the benefits for CBA members work.

>> Let's review briefly what we will cover in today's webinar. First, we will quickly discussed the importance of credit building and how rent reporting can fit into that. Next, we will cover an overview of rent reporting and why CBA police rent reporting can be a great credit building strategy. We will then go over the results of the CBA multiyear pilot program with affordable providers. Finally, we will go over how rent reporting worked in detail for affordable housing providers and cover some key areas and inquiries and Leslie as I noted before, will definitely save some time at the end of our session to answer your questions.

>> Why credit building? Simply put, because a good credit profile matters. In many ways, it is a passport to an economy. Good credit equals savings. A good credit score can save a person thousands of dollars over their lifetime and is therefore a sustainable and systematic tool for saving money. When they have good credit, consumers are offered better loan rates. Good credit also reduces or eliminates costly deposits, otherwise required to turn on utilities or acquire a cell phone contract and it reduces what people pay for credits -- products like cars. Good credit also equals opportunities and options. As we know, most people require some minimum level of stability, a place to live, and an income, before they can sustainably built assets. Many landlords pull credit reports to determine whether to rent to an applicant. And, also, to determine how much of a security deposit to charge. Furthermore, an estimated one in four unemployed Americans are required to go through a credit check on applying for a job with one in 10 tonight the job due to negative information on the credit report. As we know, credit also equals asset building, a good credit history can make a different an asset building. The affordable lending products necessary to go to college, to buy a home, or start and grow a small business which are three of the most widely promoted asset building options across the country.

>> While a good credit history and scored means lower interest rates, a bad credit history can make it difficult to qualify for asset building opportunities. So, for example, in 2009, Fannie Mae raised minimum credit score for conventional mortgages from 580 582 620. For somebody that completed a individual development program, and had 20% down payment in the pocket could still be denied a mortgage if they don't have the necessary credit score. Furthermore, lenders generally require a personal credit history before offering small business loans. In fact, the federal reserve Tony 14 joint reserve small business survey discovered that to now to small business -- discovered that denial was due to low credit scores.

>> We need credit, to simply meet our basic needs. According to pew charitable trusts, 5.5% of US adults who use payday loans in the past five years, most did so to cover ordinary living expenses on regular basis for the year. A reasonably priced and well-managed credit card is a better alternative, not just for credit building purposes but for long-term financial stability.

>> So, while it might be obvious to all on the line, it is important to bring conversation about credit building with a mission so we are all on the same page. While it may indeed involve credit education, or other credit remediation strategies, credit building is distinct in that it requires an actual credit product. This, by the way is also what makes it such a clear financial capability strategy. We will discuss this a little bit later. While the focus on credit education as we know is to help individuals build knowledge and skills to understand and address the credit practices, and the focus of credit remediation is primarily with dealing with errors and debt, and collections on credit report. Credit building focus is, on the other hand, the establishment and successful maintenance of an active trade lines that will show up on a traditional credit report. Which, historically means either installments, loans, or revolving credit products like a credit card for the state may also include some instances of alternative credit such as credit reporting.

>> To be clear, we define active as an account that is paid on time and, on which payments are made regularly, at least once in a six-month period. Having a positive just positive active treatment in your credit report is somebody -- is the only way with somebody that has no credit history can establish or reestablish a credit score. In many cases, adding an active trade line is often effective and faster in dealing with only debt for those who have core credit profiles or who wish to boost the credit scores.

>> Just a little more clarification on active trade lines. For an installment loan, to be active, it must carry a balance and have monthly payments. Even though paying off debt as a good thing, once paid in full, an installment loan is no longer active and will not continue to build credit. Eventually, and establish credit score will disappear if the consumer has no active trade lines. Revolving credit on the other hand offers an indefinite credit bowling solution as long as it is actively use. By active, it means once every six months. For many low income individuals with no or thin credit files and even those with poor credit history, the ability to establish or reestablish a good credit profile through either installments or revolving line is hampered by the lack of access to those responsible credit building products.

>> Enter a new product for building credit which is rent reporting. We define that as the establishment of a rental trade line. Regular monthly reporting of payments to at least one of the major consumer credit bureaus for inclusion on the traditional consumer credit report. We will talk more about the opportunity set rental payments presents for those that cannot access traditional credit products or who may simply not want to. Suffice to say we believe the rent reporting as a credit willing strategy offers tremendous promise as the results of our pilot will show.

>> One thing we wanted to draw your attention to is that while rent reporting can be a powerful credit the link strategy, we also believe that based on our pilot and the work that we are continuing to do with affordable housing providers across the country, including several public housing authorities, is that the pairing of rent reporting with financial and credit coaching, or other financial capability or asset building programming, offers an even greater opportunity both for residents living in an affordable housing and the providers that house them. So, we call this rent reporting for credit building.

>> This is a financial capability strategy in action. Financial capability in this context combines knowledge, skills, and a financial product to help affect long-term behavior change. Our industry has done this a long time with -- and now with credit billing and rent reporting. By combining financial education with rent reporting, every monthly payment becomes an opportunity to reinforce positive, long-lasting, behavior change. To reiterate, what financial capability really is, according to --, if financial literacy is what you know, financial capability is what you do.

>> Knowing all of this, we initiated a pilot program several years ago. It started with the identification of a problem. The problem is that unlike homeowners, renters do not build credit by making monthly housing credit -- payments. We found a solution in that reporting rental payments offer low income renters an opportunity to build credit as a financial asset. Also, that mission driven affordable housing organization are poised to help them do so. So, the goal of our pilot was to catalyze rent reporting as a valuable and viable option for low income renters to build credit and financial capability.

>> The pilot was generously funded by the foundation over three years. It was completed in December of It was completed in December 2014. The main objectives of the pilot were to discern and document the rent reporting implementation process as it applies specifically to affordable housing providers. To examine the impact of rent reporting on resident credit reports and scores. And, to explore and identify promising practices for leveraging rent reporting as a tool to engage are dispensed in translating credit improvement into actual progress toward other financial goals and as an incentive for on-time rental payments.

>> As you can see, we partnered with eight affordable housing providers along with experience -- experience -- Experian. In order to evaluate the results we looked at the rates of on-time rent payment and other measures of financial capability and asset building. So, as I said, we recruited eight trailblazing affordable housing providers including public, nonprofit, and for-profit owners and operators. In order to develop and pilot rent reporting for credit building initiatives with all or a select population of the residents.

>> It is definitely important to point out is that come in forming our pilot and our ongoing rent reporting work, is the privacy act of 1974 which places certain safeguards and restrictions on the sharing of personalized information of residents of affordable housing, specifically those who benefit from federal subsidies with a third party which would include a credit bureau. This law has very important and clear purposes. However, it comes to rent reporting, it means that any resident who wishes to have rent reported must provide rent -- written consent in order to do so. So, a property manager who operates market rate housing could have enrollment strategy and report all of the rental payments in their property to the credit bureaus but it doesn't work the same way for affordable housing providers. That could be a hurdle in terms of getting people to sign up and understand the benefit of that. But it is also an opportunity to provide that education and inform them of that opportunity.

>> Let's get to the results of our pilot. In general, we found that renters see rent reporting as a good opportunity for credit building. We found that rent reporting offers a significant credit building opportunity to affordable housing renters. We found that rent reporting is a promising strategy for affordable housing providers seeking to increase resident participation. And, success and financial coaching and asset programs. We found that rent reporting and combination with financial coaching can really incentivize residents to increase the rates of paying rent on time.

>> When we began this pilot, one of our first questions was, how will residents responded to this opportunity? What we found was that the pilot groups that were surveyed, and we had over 400 respondents that said, a few of them had seen the credit report risky -- recently but a large majority felt that having good credit was very important. And nearly all of those residents reported that paying the rent on time is a good way for them to build credit.

>> Once we had people enrolled in rent reporting and were able to analyze some of the results, we wanted to measure the real impact of rent reporting on individual credit reports and scores. So, Experian look at the advantages score 3.0. We did this analysis for 987 individuals. What was done was, there was one credit pull for all of the participants in the program for the rent reported. What they did, they actually simulated the removal of that rental trade line in order to see what the actual impact of what that rental trade line was without having to worry about how other types of credit behavior during that same time might have affected the resident credit scores.

>> The first thing we found was the group of the entire group, starting out 1% of the participants had no trade lines at all. Or, those that had --. Those two groups, prior to adding the rental trade line, those groups had no credit score at all. They could not be generated to either of those groups. After the addition of the rental trade line, 100% of those individuals who initially had no score at all, they became score level at either the prime or nonprime levels. They didn't go from no score to --. They went from none to a pretty good or good score. For all of the individuals in the analysis we found that 79% did experience an increase in their credit score with an average increase of 23 points. 14% saw no change and 7% of participants actually did screens a decrease. Of those that experienced a decrease, 5% sought a decrease of less than 11 points and 2% sought a decrease of more than 11 points. So, the overwhelming majority experienced an increase in their credit score. We also wanted to look at the results segmented by their starting score. So, we looked at those who started out in the prime, nonprime, and the subprime categories. In each of those categories, we found that they experienced an increase in their credit score. Over half of the residents in the analysis that were starting out subprime score, 90% of them experienced an increase in the credit score with an average of 32 points. True to what we see in credit the building generally, rent reporting appears to have the greatest positive impact on those with poor, no, arson credit histories. With those starting out with a better credit score, a positive in a fit of rent reporting is slightly less. This again really reflects what we have seen from our members who are working on other credit building strategies with her clients. Really, the ideal candidate for credit building and rent reporting is somebody who doesn't have a credit score at all or somebody with a thin file or a poor credit history.

>> Also in the pilot one of our objectives was to explore and identify what those promising practices are for leveraging rent reporting as a tool to engage an increased resident participation, success, and financial coaching and asset building programs. What we found, was, as promising practices, is that it is really important to clearly connect rent reporting with relevant and specific credit building schools. Those might be short-term goals like wanting to reduce or eliminate a deposit made when getting a cell phone contract. Or, there might be more long-term goals like home ownership of the connection between those goals and enrolling in rent reporting is really key. We also found that, incorporating rent reporting enrollment into regular resident interaction is an efficient and effective strategy for getting high rate of resident participation. During the --, there will be natural touch points were the rent reporting conversation can easily fit in nicely from new resident orientation to -- to recertification. There are lots of opportunities to have that discussion with residents. It is really a great way to naturally bring in rent reporting and offer that as an opportunity to residents. We found that connecting rent reporting for credit building opportunities with existing financial coaching and asset building programming gives affordable housing providers additional hooks to increase engagement in successful participation. As well as the fact that, integrating rent reporting for credit building into financial coaching and asset building program we really empowers and sports residents to translate the credit improvements into real progress toward the broad financial goals such as of budgeting, saving, and building assets. Again, it is really that financial capability piece of having that tangible opportunity to build credit to rent reporting, to be able to connect that with other financial goals and financial coaching and education.

>> Following our pilot, we definitely recommend there are a lot more opportunities for future research and more discussion and more inquiry into rent reporting. We definitely feel that rent reporting is a viable financial capability strategy for affordable housing providers seeking to help the residents the chief financial stability but in order to bring it to scale, there is probably a lot for work that needs to be done including more behaviorally informed research on increasing resident opt in, more evaluation impact on resident credit profiles. More research on effective strategies for helping residents translate credit improvement into actual savings. New opportunities and assess for leveraging rent reporting is a positive incentive for on-time rental payment. And, additionally, productive dialogue within the credit industry regarding standardization regarding policies and procedures to assure they accommodate the needs of affordable housing providers. There is a lot of work that is being done continuing on. We are participating in helping a number of other affordable housing providers get credentials to report, doing some additional inquiry and demonstration projects, some additional analysis, resident case studies, with several different providers, in order to continue to add to our knowledge base on the impact of rent reporting. In addition, there is other research going on by other organizations including the research organization PERK is collaborating with HUD to do further research on rent reporting for those living in subsidized housing . Ultimately, rent reporting is still somewhat new.

>> And, it is not, in any way, yet standardized either within the affordable housing industry are within the credit industry. There is definitely a lot more to be done to get it to a place where rent reporting is something that people are used to and that can be a standard practice across the industry. We still, definitely, deal with some hiccups on the testing side. So, there is a lot more work to be done going forward.

>> So, just a couple of other things that we have learned. Affordable housing providers are stretched. While rent reporting process can be streamlined, and once it is in place it is relatively seamless. It does take a lot of commitment and focus to get it running. Some property management software integrates easily and some do not. So, prioritization of both rent reporting and a more comprehensive rent reporting for crop -- initiative in the face of limited technical and staff capacity can be challenging.

>> Leveraging the positive results of our pilot program. We have moved forward and we now offer rent reporting for credit holding consulting services. In order to help mission driven affordable housing providers to implement rent reporting for credit building initiatives in their community. While many organizations see the value of rent reporting, the process of getting set up as a data furnisher can be definitely, downright, daunting. We see ourselves uniquely positioned both with our experience with working with organizations across the country and also with a great relationship with major credit bureaus in order to help those affordable housing providers get the process started.

>> Okay. So, from what we learned, we really do feel that rent reporting via just -- rent reporting provides an opportunity for credit building. In the, somebody does not have to take out any new debt to enroll. It can lead to further credit building. And, provide access to safe and affordable credit building products. And, just the products that are often required for asset building such as an auto loan, a small business loan or mortgage. All of that, of course, ultimately leads to financial security and stability.

>> Rent reporting offers a win-win opportunity for affordable housing providers. For renters, we see that the opportunity to build credit with out assuming additional debt can be used to build credit with on-time payments. This improves access to traditional affordable credit products as well as new opportunities and housing and employment. For resident service providers, as we discussed, rent reporting can offer the opportunity to convert financial education programs into financial capability programs with the inclusion of a product to wrap around -- to wrap education and coaching around. For property managers, it offers a low-cost way to incentivize on-time payment as well as to recruit and retain new tenants.

>> We're going to talk in a little more detail about how the process actually works. Currently, as of recently, all three credit euros are now accepting rental trade line data. The bureaus can either receive that information correctly from a property manager who, of course, must become credentialed as a data furnisher or by a third party payment processor. We will get to what that means in just a moment.

>> Depending, of course, on whether federal subsidies are at play, property managers may decide between an opt in, opt out, or automatic enrollment strategy. Due to the fact that most of the groups we have been working with need to comply with the privacy act, we have become most familiar with the opt in option for enrollment.

>> So, as I noted before, today, all three of the big credit bureaus are loading rental trade lines onto traditional consumer credit reports. When we started our pilot, only Experian was doing so but now it has expanded a little bit so all three are actually in the game. Now that all three bureaus are accepting rental payment data, it is definitely important to note the differences in their policy. So, we will start with TransUnion and Equifax. This looks fairly similar to help other trade lines are reported because of the fact that they use a file reporting method. Just like a credit card or an installment loan, all trade line activity is reported to these bureaus. So, the property manager has their software and database. They send all rental information for those enrolled in rent reporting directly to the bureau. That all gets reported and appears on the credit report. In terms of what constitutes a late payment, it is again similar to the way it works to a traditional trade line where, a late payment is determined as one that has not been received in 30 days or more, regardless of what the internal grace period or late cut off date is for that particular organization. Experian Works a little bit differently. It acquired RentBureau. They include only positive data on that consumer report. They still use, well, the information that goes on to the credit report actually goes through the credit report first. So, in the case of this, the landlord or property manager, or rental payment processing company sends both on-time and late payment data to RentBureau from their database. All of those that are paid as agreed, or positive payments, go to the traditional consumer credit database and credit reports. Late payments that are received, those go to the tenant screening database but they don't show up on the traditional consumer credit report. So, if a tenant Mrs. a rental payment, then the payment would show up in RentBureau, but in the Experian credit report, it would show up as no data received. If the resident who is enrolled in rent reporting misses three consecutive payments, then Experian will remove the entire trade line and it will be as if it never existed in the first place. It is a little bit different and how that shows up. Only positive information is showing up on the Experian credit report. However, because the late payment information is going into Experian rent -- Experian RentBureau , that information could affect the resident in the future if they were applying for a new rental property and the landlord purchased information trucked from Experian RentBureau, you might see that negative information. Just another note on the case of Experian, what is defined as late is actually how the property manager defines that as late. So, if a resident misses a payment or the payment is late, as per the property managers internal policy, it will be flagged as such and the RentBureau database. That is a little bit how to process it just are -- process is different. Decided what bureaus to report to is one of many things that and affordable housing provider might consider when setting up to report rental payments. I apologize for the tiny print here. I wanted to illustrate that the variety of factors that affordable housing providers would have to consider when deciding how to report rental payments. They don't have to decided to report to just one. They can up late to multiple bureaus. That might be a factor in the decision. The property manager might want to consider if they want to report the positive only or if they want to report the full file. There are pros and cons there. Beyond those reporting policies that we just covered, affordable housing providers might also have to consider costs and technological factors in terms of how they want to go about reporting. While there is no direct cost to report to any of the euros, and affordable housing organization might have to factor in the soft cost of staff time to get the project up and running as well as the cost charged by the software company associated with creating and transmitting the necessary monthly reports needed to report rental payments. As rent reporting is still relatively new, the ability to generate the necessary information that meets the euros formatting requirements is not yet standardized are built into most property management software solutions. The technical side of getting set up to report can definitely be a lengthy and resource intensive process in some cases.

>> We have mentioned a couple of times, third-party data for Richard -- third-party data furnisher's. We have listed some of the organizations that we know of to date. These organizations are currently set up or are getting in the process of setting up. Most of these businesses are payment processors meaning that they offer housing providers electronic mechanisms for paying their rent which also gets reported to the credit bureaus. One of the exceptions is rental -- Rentak Kharma -- Rental Kharma. This one, a renter and a rental payment processor can report.

>> Some of these might be viable options for both organizations and possibly individual residents. However, it is not always clear. It is not clear what would be a good option for organizations are residential residents. Research needs to be done. We are continuing our own research and taking connections. We have made connections to date with some of these to see what opportunities might be good with our field and all those that you serve directly.

>> I wanted to cover some common questions that come up when we are discussing rent reporting. One question is, how does the rental information show up on a credit report? As an installment or revolving account? The answer is neither. Rental information reported on the credit report actually functions as an open trade line. It has a recurring monthly set limit. It does not chemically -- calculate monthly balance. It is not like you have a $5000 total lease of the year. And, your bring that balance down over 12 months. It is actually, each monthly payment fulfills the required amount. So, it is neither revolving nor installment. The function differently.

>> Is it possible for rent reporting to have a negative impact on an individual's credit score course it is. As we saw in the pilot, there were a few people that didn't see a decrease. It --

>> How could that happen? Adding new trade line will decrease somebodies average length of credit history. It can also increase the debt to credit ratio. Also, it can move somebody between scorecards which means they might be subject to a slightly different scoring system. Ultimately, it will be a smaller number of people who see the negative effects. As you saw in the pilot, the long-term that of its are definitely most effective for those starting out with no score at all or a thin credit history or a poor credit history.

>> Our past rental payments reported? Typically, yes. When the landlord status reporting, they can actually report the past 24 months of payment history that is available on to the credit report. That is, fantastic for somebody who doesn't have any history at all. To automatically benefit from having two years of history, especially positive history, to all of a sudden appear on the credit report.

>> Our rental trade lines factored into all credit scores? Newer credit scores including VantageScore 3.0 and FICO 9 are optimized for rental data. Whereas, older scores might factor in the trade line, but we don't know exactly how the trade line impacts those older scores. The newer scores are definitely optimized to consider the rental data.

>> How quickly does rent reporting impact and individuals score over time? It depends. There are never guarantees. And, the rental payment Credit Builders Alliance is only one of a lot of different factors calculated into a credit score. But, because often there is a history with up to 24 months loaded, typically residents will see the most significant increase in their score in the first month the rent is reported and then modest increases if any, after that.

>> So, those are some of the most common questions we have seen. Now I want to briefly touch on giving you a bit more information on how CBA can and does work with affordable housing organizations to get started with rent reporting. So, our rent reporting services are different than traditional reporter service. To which, we act as an intermediary between nonprofit lenders and credit bureaus. And, consumer, the loan payments actually funnel through us. However, with rent reporting, we help affordable housing organizations become credentials to report directly to the bureaus. To be clear, and affordable housing organization does not need to work with us in order to become credentialed to report, but what we can do is provide our experience in helping groups and navigate the process and develop a strong rent reporting program. So, and working with the the groups, we hope to define the organizational commitment. We really hope to have groups, among the leadership and other departments, like resident services and leadership and legal and resident services, and property managers. All of those, we help get everybody on the same page and establish the buy-in. We also help the groups go through the decision-making process on how they are going to set up their programs and which a bureaus they are interested in reporting to and what are the different ways the pros and cons of the different options are. We also help groups develop a comprehensive education plan, outreach plan, and outcome tracking plan so they can make it not just a rent reporting program but a rent reporting for credit billing program and make sure that they are establishing a program that fits with their mission and also meets the needs of the residents. We also help with the organizations to get credentialed with the Bureau. We help facilitate some of those conversations. And, we use the experience we have working with a variety of different groups across the country to know how to get through some of those hurdles. And then finally, we help will out the program implementation and work out any kinks in that. So, we are actively working with quite a few group 3 now. We're always interested in talking with more organizations that are interested in rent reporting. It is really exciting right now that we have gotten a grant from Experian to subsidize some of our consulting services, and for a limited number of affordable housing providers over the next year. So if anybody is on the line and interested in that opportunity, definitely contact us if you want more information about that. So, we are going to move forward to questions in a moment, but before we do that, I wanted to, just do a shout out about all the different resources that we have on our website including lots of different materials and a full report on our rent reporting pilot program. You can search through our website and find our work comprehensive report and reporting materials there. I also wanted to call your attention to credit building symposium which we are really excited about. That is coming up in July. That is coming up in July 2016. So, definitely get more information on that and look at our agenda which is up on our website. You can search our website for that. So, that's being said, I will move on to questions and I also wanted to say that the next webinar in this series is going to be reading and interpreting credit reports. That is going to be able 13th. That's will be facilitated by the financial clinic. Definitely, have -- definitely get signed up for that. It will be a great presentation. With that, it looks like the questions are coming in. So, I am going to go ahead and answer those.

>> If you have additional questions, put those into the box and we will get to those. The first question is, will fight coat scores -- will FICO scores take into rent reporting?

>> Yes, it is deftly optimized for rent reporting. The previous versions of the FICO score will be factored in but we don't know enough about what the impact would be on those.


>> Next is, with Experian, will a new landlord be able to pull information through the three consecutive late payments, well, even if the three consecutive late payments were removed? I'm getting the clarification on that. So, the question is, would a landlord with, well, with Experian, would a landlord see that they made late experience through the traditional Experian credit report? So, the new, well, so, if a landlord was using information that they purchased from Experian RentBureau, then yes, they would be able to see that information, whether positive or late, but it would be removed only from the traditional Experian report .

>> What has been the biggest challenge from the perspective of getting organizational buy-in from affordable housing providers? So, from what we have seen, one of the challenges is definitely in the leadership and compliance zone. It is understanding the requirements of the fair credit reporting act and the responsibilities of those. So, definitely, some organizations have been wary of taking on that risk and responsibility of what is involved in being a data furniture which basically requires that an organization reports information that is accurate to the best of their knowledge. And then responds appropriately to disputes if they come in. We definitely worked closely with affordable housing providers in order to cover what those responsibilities are and help them define policies and procedures that makes sure they are in compliance with those. What we also found, because it is an opt in process, that it diminishes a lot of the risk because organizations are not enrolling their entire population. People who are enrolling really want to see rent reported. So, it reduces the amount of potential dispute and that kind of thing.

>> Okay. Next question.

>> How our rental trade lines reported on the traditional credit report and how are they different from an installment or revolving line? So, rental trade lines show up on the credit report and they are not an installment or revolving line. But, they still contain the history of the rental payments, but they function a little differently. It is not an open rolling account. It is not an installment become part of every month there is a balance due in the balance paid. It is almost like a one month installment contract. This, it is able to be flexible for people who are in subsidize housing you might have monthly payments that are going to be changing over time.

>> If a renter isn't living in a property that is reporting rent payments, what can he or she do to get the landlord to start reporting?

>> Definitely, talking to the property manager and landlord about the interest and reporting would be important. In terms of that, the property manager knows that it is something that they want. That would be the first step. If there landlord is not reporting and not interested, they can also seek out, potentially, other options such as rental -- such as Rental Kharma, but there is a cost to that service.

>> Hello does the overall process take to implement a rent reporting for credit building program?

>> It really varies in terms of, you know, a lot of factors including, you know, where the organization is at in terms of buying into the program as well as their technical setup. But on average, it is probably about nine months to a year to have everything fully up and running but could definitely go a lot slower or quicker depending on how moat book -- how motivated that organization is to move forward.

>> I don't see any other questions. Let's see. One more question. So, can CBA help us with a dispute process if we want to start reporting rental tenants of our residents?

>> So, we do offer, to all traditional CBA reports, help with the dispute process as part of their annual reporting. That is definitely something we can offer similar to the affordable housing providers provide absolutely.

>> I just got another question. If a landlord just has one tenet, which one of the rent trekkers is more appropriate? I don't have a question about what is the best option, one tenet, well, I would say, it is kind of lost in the internal discussions by the cost-benefit of incorporating one of those types of solutions.

>> Okay. It doesn't look like there are any more questions coming in. I want to say thank you for participating today. We look forward to your participation in the next webinar in the series which is on reading and interpreting credit reports. That will be April 13. Definitely take a look at all of the other webinars in the series. Again, thank you and have a great day.

>>[ Event

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