Real Estate
Home›Real Estate›Mortgages›MBA urges end to mandatory tri-merge credit reports fo…
MBA urges end to mandatory tri-merge credit reports for agency loans
MBA says the current tri-merge model is outdated and costly as FHFA weighs bi-merge and single-pull options.
HousingWire reports that Mortgage Bankers Association President and CEO Bob Broeksmit stepped up pressure on the Federal Housing Finance Agency and credit bureaus to move away from mandatory tri-merge credit reports.
Broeksmit said credit reports matter even more than credit scores and argued the current model is outdated and costly for lenders, as most agency loans require reports that pull data and scores from all three major bureaus.
HousingWire adds that FHFA Director Bill Pulte has said the regulator is considering a bi-merge option, using two bureaus instead of three, and is also studying a single-pull option for agency loans.
The shift would follow a Biden-era move, and HousingWire notes MBA is signaling a potential end to required tri-merge reporting as lender margins tighten and compliance costs rise.