TransUnion, one of “big three” credit reporting agencies, remains all in on the tri-merge credit report requirement for loans backed by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

In a study released Monday, the Chicago-based credit bureau said it remains “an ardent supporter of the tri-merge credit reporting model for mortgage underwriting,” arguing that shifting to a single-bureau model could exclude 4.4 million borrowers from qualifying for agency-backed mortgages.

“The data consistently shows that more information means more opportunity for homebuyers,” said Satyan Merchant, senior vice president of mortgage and automotive at TransUnion, in a press release. “A ‘single-pull’ environment creates significant risk that strong borrowers will lose access to credit while additional at-risk borrowers find themselves in a mortgage they can’t afford.”

The TransUnion study claims that in addition to excluding potential borrowers, a single-bureau model could also result in riskier loans being underwritten if lenders try to “game the system” by shopping around for a credit report most likely to close a deal.

“The simulation projects 300,000 consumers could be approved for mortgages they wouldn’t qualify for under a tri-merge model,” the study states. “This type of misclassification — where lenders lack a complete credit picture — was a critical factor in the 2008 financial crisis.”

Arguments for a single-pull model

Tri-merge means a credit report that pulls information from all three of the major credit bureaus: Equifax, Experian and TransUnion.

Classic FICO is an example of a GSE-approved tri-merge model, as is VantageScore 4.0, which was added as an approved model in July by Bill Pulte, director of the Federal Housing Finance Agency (FHFA).

In August, Mortgage Bankers Association President and CEO Bob Broeksmit called the tri-merge requirement an “outdated relic” in a video posted to social media.

Broeksmit had previously laid out his case for a single-bureau model in a June blog post, arguing that “while a tri-merge is required for GSE loans, the GSEs do not use credit scores to make credit underwriting decisions, and there appears to be limited additive value in the data contained in multiple reports.”

Broeksmit added: “A single file/single score approach would mirror that of most other consumer finance markets, including home equity loans and auto loans — which have seen success with this structure.”

Kimber White, who was sworn in as president of the National Association of Mortgage Brokers on Oct. 1, also expressed support for single-bureau reports in a recent interview with Scotsman Guide.

“It is absolutely ridiculous when I see three reporting agencies and I see the same credit from the same people and they can go as much as a 50-point difference,” White said.

He added that he would like to see variations in credit scores deemphasized when assessing loan-level pricing adjustments that increase the costs of mortgages backed by Fannie Mae and Freddie Mac.

“If you have someone that has a 760 credit score and someone that has a 785 credit score, you know what? There isn’t that much more of a risk,” White said.

A shifting credit score landscape

The debate over tri-merge vs. single pull is taking place amid increased competition and more aggressive pricing tactics between FICO and VantageScore, which is jointly owned by the three major credit bureaus.

Following Pulte’s VantageScore 4.0 announcement, FICO and Vantage released competing studies, each claiming its model was superior at predicting mortgage defaults.

Earlier this month, FICO introduced a direct license program that lets tri-merge resellers calculate and distribute FICO scores directly to lenders, effectively bypassing the credit bureaus by letting resellers purchase scores straight from FICO.

FICO’s new plan allows lenders to either pay $10 per score or use an alternative “performance model” that charges a royalty fee of $4.95 per score plus a funded loan fee of $33 per borrower per score when the loan is closed.

Equifax responded to FICO’s move by announcing that it will price VantageScore 4.0 mortgage credit scores at $4.50 through the end of 2027. Additionally, the credit bureau will offer free VantageScore 4.0 credit scores through the end of 2026 to all Equifax mortgage, automotive, credit card and consumer finance customers who purchase FICO scores.

On Friday, TransUnion undercut Equifax by announcing that it will offer VantageScore 4.0 mortgage credit scores for $4 in 2026, as well as offering those scores for free to customers that purchase a FICO score from TransUnion through the end of 2026.

In a press release, TransUnion said it was “taking up FHFA Director Bill Pulte’s challenge to increase competition in mortgage credit scoring and lower the cost of borrowing for consumers.”