Lenders Push Single-Bureau Credit Pulls, Threatening TransUnion's Tri-Merge Mortgage Business

Lenders press for single-bureau credit pulls, putting three-bureau model under strain

Mortgage lenders and trade groups are pushing regulators to allow single-bureau credit reports for higher-scoring borrowers, a move that could reshape how TransUnion and its peers supply credit data to the mortgage market. The Mortgage Bankers Association urges the Federal Housing Finance Agency to permit lenders to rely on one credit report rather than the customary tri-merge for borrowers with credit scores of 700 or higher, arguing that single pulls reduce closing friction and costs. That request comes as lenders confront rapidly rising fees tied to obtaining credit files and seek ways to curb a closing-cost line item that, while small in absolute terms, is escalating.

For TransUnion, Experian and Equifax the proposal presents both commercial risk and operational opportunity. A shift away from tri-merge reports threatens demand for three-bureau packages that are a routine element of mortgage underwriting, potentially reducing aggregate pull volumes and changing revenue mixes. At the same time, selecting a single bureau per loan would intensify competition for being the chosen data provider, pressuring pricing and service-level agreements and prompting bureaus to rework integration, fraud-detection and dispute-resolution processes to fit single-pull workflows.

The change also raises questions about redundancy and risk management that directly involve credit-reporting firms. Tri-merge pulls provide cross-checks that many lenders and consumer advocates view as safeguards against reporting errors and fraud; moving to single pulls would concentrate reliance on one data source and may require new verification layers or contractual protections. TransUnion is therefore navigating discussions with mortgage lenders, regulators and trade bodies over how to preserve consumer protections and operational stability if underwriting practices pivot.

Fannie Mae underwriting change increases pressure

The debate intensifies after Fannie Mae removes a minimum credit-score threshold from loans processed through its automated underwriting system, reducing a compliance anchor that historically kept lenders aligned to certain risk bands. Because the Federal Housing Finance Agency oversees Fannie and Freddie, any FHFA decision on credit-pull practices would quickly ripple through the secondary mortgage market and affect how bureaus are contracted and paid.

Regulators weigh costs against consumer safeguards

The MBA warns that credit-report charges could rise 40% to 50% in 2026, and regulators must balance potential savings and lower friction against weakened redundancy and consumer risk. Stakeholders say the FHFA and market participants must oversee any shift carefully to protect borrowers and preserve nationwide market stability.