Mortgage Bankers Association pushes for end to tri-merge credit reports

Broeksmit has been a vocal proponent of a single-pull credit report, particularly for lower-risk loans, as lenders grapple with shrinking margins and rising compliance costs. Currently, most agency loans necessitate a tri-merge report, which aggregates data and scores from all three major credit bureaus, adding significant cost to each loan file.

Federal Housing Finance Agency (FHFA) Director Bill Pulte has indicated on social media that a bi-merge option, requiring reports from two bureaus, is under consideration, mirroring a proposal from the Biden administration. Pulte also stated that the FHFA is studying a single-pull option. Pulte canceled an in-person appearance at the convention but is scheduled to speak virtually. The FHFA recently allowed the use of Classic FICO or VantageScore 4.0 credit scores.

Pushback to the potential changes has come from the credit reporting industry. Dan Smith, president and CEO of the Consumer Data Industry Association (CDIA), argued that "more data, not less, produces better outcomes, and keeps borrowing costs down." He emphasized that maintaining tri-merge reports is critical for the safety and soundness of the mortgage industry.

Broeksmit also touched on appraisal and capital rules. The MBA supports the adoption of the Uniform Appraisal Dataset 3.6, thanking regulators for providing more time for preparation. Separately, MBA chairman Owen Lee announced that a new Basel III proposal is expected by the end of 2026, with the MBA working to adjust capital requirements for mortgages. Lee also introduced an "affordability action plan" with 20 proposed reforms that could be implemented immediately. The MBA is also launching an initiative to engage individual loan officers with continuing education and career development resources.