Equifax and TransUnion are introducing new ways for lenders to buy credit reports and scores separately, targeting rising origination expenses as the industry moves toward more choice in credit-scoring models.
Both credit bureaus announced products Thursday that allow lenders to obtain credit data without immediately purchasing a score, or to select which score accompanies a report. The offerings are designed to reduce spending on applications that never reach closing and give lenders more flexibility when evaluating borrowers under different scoring models.
The launches come amid accelerating adoption of VantageScore 4.0 and growing competition over credit-reporting costs. Equifax also announced Thursday that nearly 2,000 mortgage lenders and resellers participated in its VantageScore promotion between April and September, and that it will extend its $1 VantageScore pricing through the end of 2028.
TransUnion committed to 99-cent VantageScore pricing through 2028 last month.
Beyond lowering the price of individual scores, the bureaus are giving lenders more control over when those charges occur during origination.
Two Approaches To Lowering Credit Costs
TransUnion's new First Look Functionality for Mortgage allows lenders to purchase a credit report without a score or with a score of their choice, then add other scores later in the process.
When eligibility and matching requirements are met, lenders can obtain the additional scores without paying for another credit report.
The product supports both soft- and hard-pull workflows and is available through mortgage resellers. TransUnion says it can work with existing government-sponsored enterprise and Federal Housing Administration automated underwriting processes without changes to selling guidelines.
"Mortgage lenders face sustained pressure to control costs and operate more efficiently without compromising underwriting decisions," said Satyan Merchant, TransUnion's senior vice president and mortgage business leader.
Merchant said the new functionality allows lenders to begin with credit-report insights and add score-based decisioning when needed.
Equifax's Mortgage Score Select takes a similar approach but uses a different pricing structure.
Lenders and brokers can request an Equifax credit file with Classic FICO, VantageScore 4.0, or no score. FICO Score 10T will become an option when approved for the applicable use.
If another look at the file is needed, customers can retrieve it again within 24 hours for $1, plus the cost of any selected score.
"With Equifax Mortgage Score Select, we are helping lenders and brokers achieve two key objectives: cost-effectively gaining access to more data to support lending decisions and qualifying more borrowers based on those expanded data sets," said Joel Rickman, Equifax's general manager and senior vice president of U.S. Mortgage and Verification Services.
Unlike TransUnion's offer to add scores without purchasing another report when certain conditions are met, Equifax is offering a discounted repeat file pull. Neither company has disclosed enough pricing information to establish which approach would cost less for a typical broker or lender.
The advertised $1 and 99-cent VantageScore prices cover the scoring models, not necessarily the complete credit-report packages. Reseller charges and other fees can still apply.
The potential savings will depend partly on whether their credit providers and lenders make the new workflows available, and how those costs are passed through.
VantageScore Adoption Is Accelerating
Equifax said nearly 2,000 lenders and resellers took advantage of its offer to obtain VantageScore 4.0 at no additional charge alongside paid legacy scores between April and September. The number of mortgage VantageScore scores pulled through Equifax increased 230% between April and August.
More than 165 lenders now use VantageScore 4.0 exclusively at the $1 price for certain loan types, according to Equifax.
A separate figure from Fannie Mae offers a broader view of the model's growing presence in conventional lending.
The government-sponsored enterprise reports that 37% of conventional applications created in Desktop Underwriter during September included a VantageScore 4.0 credit score.
Earlier industry research also showed that actual VantageScore loan deliveries were heavily concentrated among a small number of large lenders, particularly Rocket Mortgage and United Wholesale Mortgage.
UWM recently introduced automatic credit-score selection, while Pennymac implemented VantageScore 4.0 across its retail, broker, and correspondent channels earlier this week.
Credit Bureaus Face Pressure Over Costs
Federal Housing Finance Agency Director William Pulte has criticized the cost of credit reports and said the agency is considering alternatives to the longstanding three-bureau reporting requirement, including a two-bureau approach or potentially a single credit report.
The proposals remain under consideration. For now, Fannie Mae requires VantageScore 4.0 to be obtained from all three bureaus for eligible loans delivered through Desktop Underwriter.
The new Equifax and TransUnion products do not change those requirements. Their potential savings instead come from reducing unnecessary score purchases earlier in the process.
The credit bureaus also have a financial incentive to encourage VantageScore adoption.
Equifax, TransUnion, and Experian jointly own VantageScore, which competes with FICO. During a July earnings call, Equifax CEO Mark Begor told investors that the company earns no margin on FICO mortgage scores, despite those scores accounting for a substantial portion of its mortgage-related revenue.
Equifax has projected that broader adoption of VantageScore could generate $1 billion in potential savings for the industry and consumers.
FHA Expansion Adds Urgency
FHA recently set Jan. 1, 2027, as the start date for accepting VantageScore 4.0 and FICO Score 10T alongside Classic FICO for eligible loans.
Fannie Mae has also moved to level the playing field, aligning its loan-level pricing adjustments for Classic FICO and VantageScore 4.0 effective Oct. 1.
Together, the changes expand lenders' credit-scoring options, although restrictions remain. FICO Score 10T is not yet eligible for Fannie Mae deliveries, and manually underwritten Fannie Mae loans must continue using Classic FICO.
The Savings Question Remains
Neither Equifax nor TransUnion disclosed how much lenders could save per application or funded loan using the new tools. Actual savings will depend on when scores are purchased, how often additional reports are needed, and the pricing arrangements with credit resellers.
For originators, the bigger question is whether those savings will extend to independent brokers and borrowers. With both bureaus locking in discounted VantageScore pricing through 2028, competition is moving beyond the cost of individual scores to how credit is purchased throughout the loan process.
