In an environment where credit standards are under intense scrutiny, the Andrew Davidson & Co. (AD&Co) whitepaper remains the definitive analytical benchmark for understanding the Tri-Merge ecosystem. This research provides the rigorous, empirical data needed to evaluate the true impact of moving toward reduced-data models like single- or bi-merge reporting.
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Key empirical findings from the February 2026 study include:
- Proven Score Volatility: The research found that 18% of consumers had a single score that differed from the Tri-Merge standard by 20 points or more—a variance that guarantees a shift in GSE pricing buckets.
- Quantifiable Financial Risk: For a standard $350,000 loan, the study illustrates how score discrepancies can lead to mispriced fees and mortgage insurance costs ranging from $3,000 to $5,000 in present value.
- The "Score Shopping" Incentive: AD&Co identifies a significant risk where originators or consumers could "shop" for the highest score, leading to underpriced credit risk and potential systemic instability.
- Impact on Equitable Lending: The data highlights that minority and lower-scoring borrowers face the highest levels of score uncertainty, making the Tri-Merge ecosystem a vital component of fair lending accuracy.
As the industry moves forward, these findings serve as a critical reference point for lenders and investors committed to maintaining the integrity and transparency of the mortgage market.
