Lend Your Voice Now in Support of Ending the Tri-merge Requirement
Recently, FHFA Director William Pulte made clear that significant changes to the mortgage credit reporting system are under consideration–including moving away from the costly and antiquated tri-merge requirement. Now is the time for MBA members to make their voices heard.
MBA President and CEO Bob Broeksmit, CMB, noted that in posts on X, Director Pulte highlighted the high costs of the current credit reporting system and the impact those costs have on American consumers. Director Pulte said FHFA is “strongly considering bi-merge, and stronger solutions,” and that the agency is “studying the use of just one credit report” to lower costs to consumers.
On Wednesday, Director Pulte posted lender letters from the GSEs (Fannie Mae and Freddie Mac) on allowing all lenders to originate and deliver loans using VantageScore 4.0.
Why it matters: These comments and actions represent an important opportunity to advance credit reporting reforms that MBA has been working on for years: ending the GSEs’ universal tri-merge requirement and creating greater competition in the mortgage credit reporting market.
• MBA has consistently made the case that requiring lenders to obtain reports from all three credit reporting agencies limits competition and gives providers little incentive to compete on price or service. The result has been years of significant price increases that have raised costs for lenders and borrowers. And the pressure on costs continues. It will come as a surprise to nobody if additional price hikes are again on the table in the coming months.
As Broeksmit said in a press statement last week on the expansion of the VantageScore 4.0 pilot, MBA also supports ending the tri-merge requirement and moving to a single-file approach for borrowers with strong credit profiles, which would further promote competition and reduce costs for consumers. These important updates will give lenders greater flexibility, enable more consumers to be scored accurately while maintaining prudent risk management, and expand sustainable access to homeownership.
Act now: Director Pulte is signaling that FHFA is seriously considering changes to the status quo. Now is the time for MBA members to make their voices heard.
Using the hashtag #endtrimerge, tweet at Director Pulte or share your support on LinkedIn: ending the universal tri-merge requirement will increase competition and lower costs for consumers without compromising credit quality.
“Help us turn years of advocacy into action,” Broeksmit said.
