Federal Housing Finance Agency Director Bill Pulte renewed calls for lower credit reporting costs on Thursday, calling Equifax, Experian, and TransUnion "cartel-like" and saying the agency is "seriously considering bi-merge, and stronger solutions." In later posts on Friday, he added that FHFA is "also studying the usage of just one credit report." Pulte said his approach to GSE credit reporting requirements and related reform would be "safer and sounder" than past efforts.
The Consumer Data Industry Association, the bureaus' trade group, said credit bureaus operate legally, offer discounts, and protect mortgage integrity with their traditional trio of reports. None of the three bureaus responded to inquiries at press time. Pulte also said he is instructing Fannie Mae and Freddie Mac to approve all lenders to use VantageScore, which the bureaus created as an alternative to FICO. The Community Home Lenders of America welcomed the move, with CHLA's Rob Zimmer calling it "a decisive action to increase competition and save mortgage borrowers money." The Mortgage Bankers Association said it supports ending the tri-merge requirement and moving to a single-file approach for borrowers with strong credit profiles.
The push for bi-merge or single-report alternatives could reduce costs for lenders and borrowers if implemented, but it faces structural limits. The Federal Housing Administration, a sizable part of the government-related mortgage market outside the GSEs, said earlier this year it planned to stick with the tri-merge requirement. The previous oversight chief for Fannie Mae and Freddie Mac had considered a bi-merge but reportedly dismissed the idea of a single report. FICO said it supports Pulte's commitment to a competitive environment and anticipates future implementation of its 10T model to compete with VantageScore 4.0.
What remains unknown is whether FHFA will formally propose a bi-merge or single-report rule, and how the bureaus would respond to any loss of tri-merge revenue. The National Credit Reporting Association declined to immediately respond, and the bureaus had not commented at press time. Pulte had previously paused the bi-merge effort to prioritize legally mandated score modernization, so the timing and scope of any rulemaking are still uncertain.