FHFA Considers Single-Bureau Mortgage Pulls; TransUnion Tri-Merge Revenue Could Be Hit

Mortgage credit pulls face scrutiny

Mortgage lenders, regulators and credit bureaus are debating whether to let lenders rely on a single-bureau credit report for higher-score borrowers, a change that could reshape closing costs and vendor revenue across the mortgage market.

Bureaus face pressure as MBA pushes single-report option

The Mortgage Bankers Association is urging the Federal Housing Finance Agency to allow lenders the option of using a single credit report rather than the customary three-bureau "tri-merge" for borrowers with scores of 700 or higher, saying the move could blunt a rapid rise in credit-reporting fees that are appearing as a growing closing-cost complaint. In a letter to FHFA Director Bill Pulte, the MBA warns that those charges could increase by an average 40% to 50% in 2026 and argues single-bureau pulls for higher-scoring borrowers could lower costs and operational friction.

The proposal directly affects TransUnion and its two large rivals, which provide the tri-merge reports that lenders typically buy to underwrite loans destined for government-sponsored enterprises. Because Fannie Mae and Freddie Mac dominate the secondary mortgage market, lenders follow their underwriting and disclosure practices; any FHFA move to permit single-bureau use would quickly alter demand patterns for bureau products and could reduce volume and revenue tied to tri-merge services. Bureaus are likely to reassess pricing, product bundles and compliance support if the market shifts away from mandatory three-bureau pulls.

Critics caution that fewer redundant credit pulls could weaken safeguards that catch errors or fraud, shifting more responsibility to lenders and overseers. The FHFA’s decision is therefore pivotal: regulators must balance potential cost savings for borrowers against risks to underwriting accuracy and market stability. TransUnion and peers may respond by enhancing single-report analytics, fraud-detection tools or service-level guarantees to preserve confidence if the industry moves toward fewer bureau interactions.

Fannie Mae move raises stakes

The debate intensifies after Fannie Mae removes a minimum credit score requirement from some automated underwriting, a change that further alters lender incentives and heightens the FHFA’s policy choices because many originators design processes to meet GSE standards.

Borrower credit strength and the closing-cost debate

Average credit scores for first-time and repeat buyers remain high, which the MBA says supports a targeted single-bureau approach for higher-scoring borrowers; regulators, trade groups and lenders continue to debate whether that trade-off meaningfully reduces costs without compromising consumer protection.