The Mortgage Bankers Association (MBA) is renewing its push to replace the outdated tri-merge credit report requirement for GSE and government loans with a more streamlined single-report model. The association argues the current system is needlessly expensive, limits competition, and no longer reflects today’s credit reporting capabilities.
In his latest To the Point blog, MBA President and CEO Bob Broeksmit, CMB, wrote, “There has to be a better way,” calling the tri-merge requirement — pulling reports from Equifax, Experian, and TransUnion — “an anachronism from the days when there were significant disparities in coverage by the credit bureaus.” He noted that despite mortgage originations falling to levels not seen since the mid-1990s, credit bureaus have posted strong earnings in the mortgage segment, largely by increasing prices in a market where lenders have little choice.
Momentum Builds For Credit Reporting Reform
The proposal aligns with recent comments by FHFA Director Bill Pulte, who has emphasized reducing borrower costs and improving mortgage industry efficiency. His public remarks, including at the MBA Secondary Conference, have sparked fresh attention to long-standing credit reporting issues.
This comes amid broader scrutiny of the credit score transition process. Industry leaders have raised concerns about the lack of clear agency guidance, making it difficult for lenders to adopt new scoring models — issues explored in “Credit Score Switch Proving Difficult Absent Agency Guidance”.
FHFA has since opened the door to industry feedback, inviting public engagement on the proposed score model modernization. Meanwhile, the rising cost of credit reporting services continues to attract criticism, as detailed in “Credit’s Cookin’: FHFA, Credit Bureaus, and the Battle Over Borrower Scores”.
Single Report Seen As Feasible And Safe
Broeksmit said the MBA is actively evaluating a single-report model, and early input from members indicates it’s both feasible and safe. Other consumer finance markets — such as auto loans and home equity lending — already rely on single credit reports without issue.
“There appears to be limited additive value in the data contained in multiple reports,” Broeksmit noted, adding that Fannie Mae and Freddie Mac do not use credit scores directly in their underwriting engines.
He emphasized that the current requirement would likely not exist if the mortgage credit reporting system were being designed today.
FHFA Engagement Requested
In a letter to FHFA, MBA formally requested the agency’s participation in evaluating the risk, operational considerations, and policy framework needed to make such a transition. The goal is to reduce borrower costs while maintaining safety and soundness through increased market competition.
“We look forward to continuing this work and hope this can be a step forward for consumers,” Broeksmit concluded.
MBA’s position reflects growing support in the mortgage industry for credit reporting reforms that prioritize affordability, fairness, and modernization.
