NCSHA Letter to HUD on Impact of Buy Now Pay Later Loans on Mortgage Lending
On August 21, 2025, NCSHA submitted comments to the U.S. Department of Housing and Urban Development (HUD) on its request for information regarding the impact of Buy Now Pay Later (BNPL) debt on mortgage lending. The letter highlights concerns that BNPL loans often operate largely outside traditional credit reporting systems and can be overused easily, leading to โstackedโ obligations that strain household budgets and contribute to mortgage delinquencies. In the letter, NCSHA urges HUD to adopt a broad definition of BNPL, collaborate with other federal mortgage providers on consistent underwriting standards, equip housing counselors with consumer education materials, and create tools to track delinquencies tied to BNPL use.
