TransUnion, Equifax launch 'score later' tools for mortgage lenders

TransUnion and Equifax have introduced new tools for mortgage lenders designed to reduce costs and improve efficiency in the loan origination process. These offerings allow lenders to access borrower credit information without immediately purchasing credit scores, deferring that cost until later in the process when a loan is more likely to close.

TransUnion announced its First Look Functionality for Mortgage, which permits lenders to review credit insights before committing to buying scores. This follows TransUnion's decision to extend its 99-cent VantageScore 4.0 mortgage pricing through 2028, provided it is pulled alongside a FICO score.

Equifax has launched Equifax Mortgage Score Select, giving lenders and brokers the option to pull a mortgage credit file either with a selected score or without one during loan origination. Lenders can then repull the file within 24 hours for $1, in addition to the cost of their chosen mortgage score. Equifax also plans to maintain its $1 VantageScore 4.0 mortgage credit score pricing through the end of 2028.

These new products arrive as mortgage originators contend with persistent margin compression and evolving score requirements. The Federal Housing Administration (FHA) and government-sponsored enterprises (GSEs) are moving towards accepting both Classic FICO and VantageScore 4.0 for eligible mortgages, with the FHA's change set to take effect January 1, 2027.

TransUnion's functionality allows lenders to buy a credit report alone or with one score, adding more scores later without additional report charges if eligibility criteria are met. This works in both soft- and hard-pull scenarios. Satyan Merchant, mortgage business leader at TransUnion, stated that the functionality directs resources toward promising opportunities and creates a more efficient path from application to closing.

Equifax's offering allows lenders to select a mortgage credit file with or without a score at application. A subsequent pull within 24 hours costs $1, plus the score cost. Each file is associated with a single selected score to simplify underwriting reviews, according to Joel Rickman, general manager and senior vice president of U.S. mortgage and verification services at Equifax.