MBA, FHFA explore single credit report for mortgages

While the Federal Housing Finance Agency (FHFA) under President Joe Biden proposed a transition from a tri-merge to a bi-merge credit report system, the Mortgage Bankers Association (MBA) is now assessing the feasibility of moving to a single credit report for mortgage underwriting.

Bob Broeksmit, president and CEO of the MBA, wrote in a blog post on Friday that the trade group has “begun studying the feasibility” of such a move. The trade group is “engaging with the Trump administration, and specifically FHFA, to conduct the assessments needed to reform this process and align with the rest of the consumer finance market.” 

The proposal comes amid rising credit report costs. Industry estimates suggest that in 2025, credit reporting costs will be at least 20% higher than in 2024—continuing a years-long trend of steady increases.

FHFA Director Bill Pulte has signaled that credit-score pricing is a top priority, and changes to the credit-reporting requirements for mortgages purchased by the government-sponsored enterprises (GSEs) are on the horizon.

Broeksmit noted that single credit reports are already widely used in other lending products, such as home equity and auto loans, without adverse outcomes. He argued that the tri-merge system is a legacy of a time when credit report quality and coverage varied more significantly.

“Early indications from discussions with our members strongly suggest that a single report for mortgages would be feasible without posing undue risk to the GSEs,” Broeksmit wrote. “While a tri-merge is required for GSE loans, the GSEs do not use credit scores to make credit underwriting decisions, and there appears to be limited additive value in the data contained in multiple reports.”

Under the Biden administration, FHFA announced plans to transition from a tri-merge to a bi-merge system for Fannie Mae and Freddie Mac.

The change, introduced to promote competition and reduce costs, also included the adoption of newer scoring models—FICO 10T and VantageScore 4.0—replacing the longstanding Classic FICO score. That transition was expected to begin in Q4 2025 but has since been delayed.

The MBA recently sent a letter to FHFA urging the agency to collaborate with industry experts in identifying ways to cut credit reporting expenses. According to Broeksmit, the trade group plans to “continue our investigation further” into the viability of a single credit report for mortgage lending.

“In a truly competitive market, a single-report requirement would lead to both higher-quality services and lower costs,” Broeksmit said. “Unfortunately, government mandates for a tri-merge report have insulated providers from competitive pressures, allowing them to raise prices with little regard for quality, performance or innovation.”