Federal Housing Finance Agency Director Bill Pulte is renewing calls for lower credit reporting costs, calling the bureaus "cartel-like" as he shows new interest in tri-merge alternatives.
"Equifax, Experian, and TransUnion have been overcharging Americans for far too long. This will end soon. We are seriously considering bi-mege, and stronger solutions," Pulte said in one of his
In later X posts on Friday, he added that FHFA is "also studying the usage of just
The Consumer Data Industry Association has said credit bureaus operate legally, offer discounts and protect mortgage integrity with their traditional trio of reports. The group pointed to past statements when contacted Friday. None of the three bureaus had responded to inquiries at press time. The National Credit Reporting Association declined to immediately respond.
The previous oversight chief for Fannie Mae and Freddie Mac had considered a bi-merge but reportedly dismissed the idea of a single report.
The current FHFA chief said his approach to the GSE credit reporting requirements and related reform would be "safer and sounder" than past efforts.
Pulte had paused the bi-merge effort to prioritize legally-mandated score modernization. He called for the government-sponsored enterprises to approve VantageScore
"Effective immediately, I'm instructing Fannie and Freddie to approve all lenders to use VantageScore," he said in an X post.
The bureaus created VantageScore as an alternative to the traditional FICO metric.
"The extraordinary pace of VantageScore 4.0 adoption signals a new era for the mortgage industry," said Silvio Tavares, President and CEO of VantageScore, said in a press release.
Advanced scores the GSEs are adopting, including 4.0 and the pending addition of FICO's newer 10T, are aimed at allowing broader and more advanced consideration that may improve the number and accuracy of borrower scores.
The Community Home Lenders of America said Friday that they welcomed the move after an initial rollout of VantageScore to
"This is a decisive action to increase competition and save mortgage borrowers money," said Rob Zimmer, CHLA's director of external affairs, said in a press release. CHLA has forecast that FICO could raise prices by 50% for 2027.
FICO and the bureaus both contribute to credit reporting and scoring pricing and have debated responsibility for hikes. FICO had not immediately responded to a request for comment at deadline.
The Mortgage Bankers Association has pressed for a single report option used within certain bounds with the aim of limiting risks, and issued a statement welcoming Pulte's new comments on Friday.
"We also support ending the tri-merge requirement and moving to a single-file approach for borrowers with strong credit profiles," MBA President and CEO Bob Broeksmit said in an email press statement.
The Federal Housing Administration, which represents one of the most sizable parts of the government-related mortgage market outside of the GSEs, said earlier this year that it was planning to stick with the tri-merge requirement.
The GSEs have been held in conservatorship since 2008 due to a financial crisis during the period but more recently have had a long, consistent run of profitability.
