FHFA Plans Shift to Bi-Merge Credit Reports for Mortgages

The Federal Housing Finance Agency plans to direct Fannie Mae and Freddie Mac to transition from tri-merge to bi-merge credit reports for loan deliveries. Under the proposed policy, mortgage lenders would be permitted to select data from only two of the three major credit bureaus rather than all three.

FHFA Director Bill Pulte stated the move aims to stop credit bureaus from overcharging American consumers. This initiative follows a recent decision by Pulte to allow government-sponsored enterprises to use VantageScore 4.0 scores as equivalents to Classic FICO scores via a single pricing grid.

The agency may officially announce the change during the Mortgage Bankers Association conference in Chicago on October 12. Implementation is expected to occur one to three months after the announcement.