Federal Housing Finance Agency Director Bill Pulte has intensified his push for lower credit reporting costs, describing the major credit bureaus as “cartel-like” while signaling renewed interest in alternatives to the traditional tri-merge report system.
Pulte's Social Media Statements
In a Thursday night post on X, Pulte wrote: “Equifax, Experian, and TransUnion have been overcharging Americans for far too long. This will end soon. We are seriously considering bi-merge, and stronger solutions.”
The following day, he added that the FHFA is “also studying the usage of just one credit report.”
Industry Reactions
The Consumer Data Industry Association (CDIA) defended the current system, stating that credit bureaus operate legally, offer discounts, and protect mortgage integrity through the traditional trio of reports. The group pointed to past statements when contacted Friday. None of the three major bureaus had responded to inquiries at press time, and the National Credit Reporting Association declined to comment immediately.
Notably, the previous oversight chief for Fannie Mae and Freddie Mac had considered a bi-merge approach but reportedly dismissed the idea of a single report.
Pulte's Approach and VantageScore Push
Pulte said his approach to the government-sponsored enterprises’ (GSE) credit reporting requirements and related reform would be “safer and sounder” than past efforts. He had previously paused the bi-merge initiative to prioritize legally mandated score modernization.
On Friday, Pulte instructed Fannie Mae and Freddie Mac to approve all lenders to use VantageScore. “Effective immediately, I’m instructing Fannie and Freddie to approve all lenders to use VantageScore,” he stated in an X post. VantageScore was created by the credit bureaus as an alternative to the traditional FICO metric.
Silvio Tavares, President and CEO of VantageScore, said in a press release: “The extraordinary pace of VantageScore 4.0 adoption signals a new era for the mortgage industry.”
The advanced scores being adopted by the GSEs, including VantageScore 4.0 and the pending addition of FICO’s newer 10T model, are designed to allow broader and more advanced consideration that may improve the number and accuracy of borrower scores.
Support from Industry Groups
The Community Home Lenders of America (CHLA) welcomed the move, which follows an initial rollout of VantageScore to large lenders. Rob Zimmer, CHLA’s director of external affairs, said in a press release: “This is a decisive action to increase competition and save mortgage borrowers money.” CHLA has forecast that FICO could raise prices by 50% for 2027. The bureaus and FICO contribute to credit reporting and scoring pricing and have debated which is responsible for hikes.
FICO responded in an emailed statement: “FICO supports Director Pulte’s commitment to foster a competitive environment.” The company added that it anticipates future implementation of the 10T model across the market to compete with VantageScore 4.0.
The Mortgage Bankers Association (MBA) has pressed for a single-report option used within certain bounds to limit risks. MBA President and CEO Bob Broeksmit said in an email press statement: “We also support ending the tri-merge requirement and moving to a single-file approach for borrowers with strong credit profiles.”
Concerns and Context
The CDIA has cautioned that even with limits to 700-plus range credit metrics, analysis of historical data suggests a single report could result in lower scores for up to 27.8 million people.
The Federal Housing Administration, which represents a significant portion of the government-related mortgage market outside of the GSEs, said earlier this year that it planned to stick with the tri-merge requirement.
The GSEs have been under conservatorship since 2008 due to the financial crisis, but have recently experienced a long, consistent run of profitability.
