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FHFA to require Fannie and Freddie to accept bi-merge credit reports
The shift is expected to be announced as soon as Oct. 12, with implementation planned for one to three months later.
The Federal Housing Finance Agency plans to direct Fannie Mae and Freddie Mac to accept two-bureau, bi-merge credit reports for GSE-backed mortgage loan deliveries, instead of using traditional tri-merge reports, HousingWire reports. The change targets a core part of mortgage underwriting for loans sold to the government-sponsored enterprises.
HousingWire, citing Bloomberg, says a formal announcement is expected as soon as Oct. 12, potentially during FHFA Director Bill Pulte’s remarks at the Mortgage Bankers Association conference in Chicago.
The requirement is expected to take effect one to three months after it is announced, according to the same reporting, and the FHFA did not immediately respond to HousingWire’s request for comment.
HousingWire also notes that a bi-merge option was previously considered during the Biden administration while Sandra Thompson led the agency, but was delayed due to implementation challenges. The outlet adds that some industry players have defended a single-file option, with the MBA described as a vocal supporter.