Pulte says FHFA weighing bi-merge, single credit report

Bill Pulte announced that the Federal Housing Finance Agency (FHFA) is “seriously considering” a bi‑merge credit‑report option and is also studying the use of a single credit report to lower costs for borrowers, while simultaneously mandating that Fannie Mae and Freddie Mac immediately approve all lenders to use VantageScore 4.0 as an alternative to the traditional FICO score. In his social‑media posts, Pulte criticized the three major credit bureaus—Equifax, Experian and TransUnion—for overcharging consumers and accused them of operating like a cartel, saying the agency has asked their CEOs for solutions but received only “happy talk.” He framed the move as a response to the high fees associated with FICO, which he claimed have risen 1,800 % per person since 2020, and positioned VantageScore as a way to break FICO’s monopoly and expand competition in the mortgage market.

The push for a bi‑merge or single‑file approach has historical precedent: the Biden administration under Sandra Thompson briefly entertained a bi‑merge model before shelving it due to implementation challenges. Industry reactions are split. The Mortgage Bankers Association (MBA) backs a single‑pull system, arguing it would encourage more predictive credit data, cut system‑wide costs, and not materially increase risk for borrowers with strong credit profiles. Opponents, however, maintain that the current tri‑merge model helps catch errors and prevents gaming of the system. FICO responded positively to Pulte’s comments, emphasizing its Score 10T as the most predictive credit score and pledging broader market implementation, while also noting its commitment to a competitive environment based on performance and trusted analytics.

Adoption of VantageScore 4.0 remains modest but is gaining traction. A recent Keefe, Bruyette & Woods analysis showed that VantageScore loans accounted for 4.4 % of total mortgage volume in July, with the bulk of that activity concentrated at Rocket and United Wholesale Mortgage. The Community Home Lenders of America praised the expanded acceptance, calling it a decisive step to increase competition and lower costs for borrowers. As the FHFA weighs the bi‑merge and single‑report proposals, the outcome could reshape how lenders pull credit data, potentially reducing borrower expenses, altering market dynamics between FICO and VantageScore providers, and influencing the broader landscape of mortgage financing.

⚡ Effects Interpreter