MBA challenges credit bureaus on single-bureau proposal

"MBA President and CEO Bob Broeksmit took the stage at the trade group's IMB26 Conference in Florida to say that its members and he himself have just been gaslit by the trade association that represents the credit bureaus. The MBA has proposed that lenders submit a single-bureau credit pull for loans sold to government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac when credit scores are 700 and above. The Consumer Data Industry Association (CDIA) opposes the move."

"Broeksmit said the CDIA has the audacity to claim that the proposal protects lenders' profits,' and that 'we shouldn't put taxpayers at risk just to save mortgage companies a few dollars on their bottom line.' A spokesperson for the CDIA wrote to HousingWire that the trade group stands by our position that tri-merge promotes data accuracy, market competition and investor confidence."

"Broeksmit added that Fannie and Freddie produce loans with pristine credit quality, citing recent public reports showing an average credit score of 757, with 75% of loans carrying scores above 740 and only 6% below 680. From a risk management perspective, continuing to require three in-files and three scores on every borrower has long been an anachronism, he said. Our proposal for a single in-file guards against excessive risk-taking by setting a 700 credit score floor and permitting lenders to pull two or three reports"

A proposal requests that lenders submit a single-bureau credit pull for loans sold to Fannie Mae and Freddie Mac when credit scores are 700 and above. The Consumer Data Industry Association opposes the proposal, arguing that tri-merge promotes data accuracy, market competition and investor confidence. Proponents point to high GSE loan credit quality — an average score of 757, with 75% above 740 and only 6% below 680 — and argue that a 700 score floor with optional additional pulls preserves risk controls while reducing costs. The debate centers on bureau market power, costs, and mortgage affordability.

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