“We’re also working closely with FHFA on credit scores and reporting,” Broeksmit said. “The good news is that FHFA has already unleashed new competition by opening the door for lenders to soon begin using VantageScore. Now we’re pushing to fix credit reporting, which matters even more. To put it bluntly, we want to end the mandate that a tri-merge report be provided on every loan, regardless of the risk profile.”
Meanwhile, Satyan Merchant, senior vice president, mortgage and automotive at TransUnion, warned it might keep people from getting approved.
“The data consistently shows that more information means more opportunity for homebuyers,” Merchant said. “A ‘single-pull’ environment creates significant risk that strong borrowers will lose access to credit, while additional at-risk borrowers find themselves in a mortgage they can’t afford.”
Pros: Reducing credit costs
Broeksmit said the hope was that making the move would reduce credit costs for mortgage customers and lenders.
“This single move will increase choice and lower costs for lenders and for millions of borrowers,” he said. “You’ll be happy to hear that administration officials are hearing us out. They want to make home buying more affordable for more Americans, and we share that noble and urgent goal.”
