Federal Housing Finance Agency (FHFA) Director Bill Pulte’s recent announcements on credit scoring changes reverberated through the mortgage industry Friday, with groups expressing support for a move away from traditional scoring models.

After he announced Thursday evening on X that the government-sponsored enterprises Fannie Mae and Freddie Mac would immediately incorporate VantageScore 4.0 for all lenders and potentially adopt a bi-merge scoring model, responses started flying on social media and in press statements.

If adopted, the bi-merge proposal would move the industry away from the legacy credit scoring process, in which lenders pull a tri-merge report with data from Equifax, Experian and TransUnion. The three credit bureaus jointly own VantageScore.

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Fair Isaac Corp., better known as FICO after its namesake score, told Scotsman Guide by email that it “supports Director Pulte’s commitment to foster a competitive environment that is based on performance, trusted analytics and outcomes for borrowers, lenders and investors.”

FICO has been working with Fannie and Freddie to roll out its new scoring model, FICO 10T.

“As the industry continues to modernize, we anticipate FICO Score 10T will be implemented across the market to help expand sustainable homeownership opportunities and further competition, while maintaining the safety and soundness of the housing finance system,” FICO stated.

The Consumer Data Industry Association (CDIA), a trade group whose members include the three major credit bureaus, emphasized the importance of retaining the tri-merge structure.

“Credit score modernization and the tri-merge are working toward the same goal, which is an accurate picture of each borrower. The tri-merge exists for a reason,” said Dan Smith, CDIA president and CEO, in a post Friday on CDIA’s website. “It ensures that a borrower’s full credit history is considered. It promotes data accuracy, supports market competition and strengthens investor confidence, and above all it protects the person with the most at stake in getting the price right, which is the homebuyer.”

In a statement provided to Scotsman Guide on Thursday evening, a VantageScore spokesperson applauded Pulte’s decision to expand the availability of its scoring model, noting that it has “already captured more than 9% of mortgage securitizations for Fannie Mae and Freddie Mac since FHFA allowed a limited number of mortgage lenders to use VantageScore 4.0 on May 1, 2026.”

Industry groups commend move

Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), praised Pulte and the FHFA for their work on credit reporting and scoring modernization.

“We welcome the full adoption of VantageScore 4.0 as an important step toward modernizing the credit scoring framework, increasing competition and lowering costs for borrowers,” Broeksmit said in a statement. “This milestone builds on MBA’s industry-leading advocacy over several years to promote greater competition in credit reporting and scoring.”

He said the MBA supports “ending the tri-merge requirement and moving to a single-file approach for borrowers with strong credit profiles, which would further promote competition and reduce costs for consumers.”

Broeksmit said the changes are important because they will “give lenders greater flexibility, enable more consumers to be scored accurately, and expand sustainable access to homeownership.”

The Community Home Lenders of America (CHLA) also applauded the directive to make VantageScore 4.0 available to all lenders, saying the move will challenge what it describes as FICO’s longstanding dominance in the mortgage credit score market.

“This is a decisive action to increase competition and save mortgage borrowers money, in the face of a credit score market in which FICO has too long had a monopoly,” said Rob Zimmer, CHLA’s director of external affairs.

The group has advocated for lenders to have a choice between FICO and VantageScore since 2024.

Brendan McKay, the chief advocacy officer for the Broker Action Coalition, told Scotsman Guide by text message that credit reform — if not a complete overhaul — is overdue.

“The status quo is indefensible. Credit report costs have increased by more than 400% in recent years within a system that gives three credit bureaus a government-mandated oligopoly,” McKay said. “That privilege has been abused for too long.”

He said the bi-merge option could reduce the cost of each report, while another option — portable credit — would prevent consumers and mortgage companies from repeatedly paying for the same information.

“Both are meaningful improvements, but neither fixes the underlying structure,” he said. “As long as the bureaus operate in a closed, underregulated market, the opportunity for abuse will remain.”