Blue Sage Solutions and Freddie Mac Team Up to Boost Homeownership for Renters

Blue Sage Solutions Partners with Freddie Mac to Enhance Homeownership for Renters

In a groundbreaking move to support long-term renters aspiring to achieve homeownership, Blue Sage Solutions, a renowned provider of digital lending platforms, has teamed up with Freddie Mac. This collaboration introduces a significant enhancement to the mortgage approval process by incorporating positive rental payment history into conventional loan evaluations. This innovative integration allows lenders to use borrowers' consistent rent payments as a favorable consideration when assessing their eligibility for home financing.

As of June 5, 2025, the integration with Freddie Mac's Loan Product Advisor® (LPA) provides lenders with the capability to factor in a borrower’s on-time rent payments when determining their qualifications for mortgage products. In line with this, Blue Sage’s Digital Lending Platform now empowers originators to indicate a borrower's positive rental history, thereby creating a more equitable approach to mortgage lending.

This initiative aims to address the financial obstacles faced by renters during their transition into homeownership. A recent study by the Aspen Institute illustrates the stark disparities in wealth between homeowners and renters, revealing that homeowners possess a median net worth of approximately $400,000, compared to only $10,000 for renters. Additionally, earned incomes highlight an even wider gap, with homeowners earning a median income of $92,000 versus $49,000 for renters.

By formally recognizing consistent rent payment behavior, lenders can gain a more precise understanding of a borrower’s creditworthiness, especially those who might have limited traditional credit history. Relevant data from the Urban Institute indicates that incorporating rental payment history into underwriting processes can broaden access to credit without negatively affecting overall borrower profiles.

Carmine Cacciavillani, the founder and chairman of Blue Sage Solutions, commented on this collaboration: “Our partnership with Freddie Mac highlights our commitment to innovating solutions that foster home affordability. By integrating rental payment histories into our Digital Lending Platform, we enable lenders to make more informed decisions and help more borrowers realize their dream of homeownership.”

Freddie Mac's VP of Distribution, Christina Randolph, also highlighted the importance of this partnership. She stated, “Our network partners like Blue Sage are vital in disseminating Freddie Mac's offerings. Their support for utilizing borrower-provided rental histories is consistent with our goal of aiding more individuals in their journey toward homeownership.”

The swift implementation of Freddie Mac's LPA update by Blue Sage Solutions allows lenders to begin utilizing a borrower’s rental payment data promptly, enhancing the precision of mortgage evaluations. This proactive measure opens new doors for renters eager to transition into ownership, thereby reshaping the mortgage landscape.

This significant move not only helps those looking to own a home but also underscores an industry shift towards inclusivity in the lending process. If you wish to find out more about how Blue Sage Solutions is transforming mortgage origination technology, visit www.BlueSageUSA.com.

About Blue Sage Solutions

Blue Sage Solutions is recognized as a leading provider of innovative, cloud-based digital mortgage technology services for the financial sector. Their Digital Lending Platform delivers comprehensive functionality across all lending and fulfillment processes while enhancing borrower experience. The company also offers a Digital Servicing Platform aimed at modernizing servicing operations for financial institutions. Based in Englewood Cliffs, New Jersey, Blue Sage Solutions is committed to delivering superior, secure, and user-friendly mortgage solutions.