Industry group demands federal action as credit reporting costs spike
The Mortgage Bankers Association escalated its campaign against surging credit reporting costs, calling once again for a federal investigation and the abolishment of the tri-merge credit report mandate that has left lenders at the mercy of an entrenched oligopoly.
"Once again, the national credit bureaus are abusing their government-granted oligopoly by gouging consumers," said Bob Broeksmit, MBA president and CEO.
He described the tri-merge system as "a flawed, outdated, and anticompetitive system where lenders are required to buy specific, increasingly-expensive credit reporting data from each of the three credit bureaus."
The association's pointed rebuke came as industry sources reported price increases ranging from 40 to 100% for 2026, a shock compounded by a 43% cumulative increase when factoring in FICO score adjustments and bureau-level pricing changes.
Broeksmit's frustration reflects growing industry consensus that the system has become indefensible. The GSEs do not rely on credit scores for underwriting decisions, yet borrowers bear the financial burden of mandatory tri-merge pulls estimated at $80 to over $100 per loan.
The case for single-file reports
Single-file reports are used safely in nearly every other consumer finance market, Broeksmit noted, and would "provide price relief for American homebuyers by injecting real competition, lowering closing costs, and streamlining the mortgage process, all without compromising sound risk management."
The MBA is pressing the Federal Housing Finance Agency and federal regulators to investigate what it characterizes as anticompetitive behavior.
The association also urged the Consumer Financial Protection Bureau and Federal Trade Commission to examine the government's unwitting role in "driving up these consumer credit transaction costs."
Broader momentum for reform
The latest price shock arrives amid broader momentum for credit market modernization. The MBA has begun studying the feasibility of moving to a single credit report for mortgage underwriting, and the FHFA's approval of VantageScore 4.0 introduces a new level of credit competition.
Still, the pricing tug-of-war continues. Credit bureaus previously charged markups of roughly 100%, which was made possible by limited competition in the conforming mortgage market.
For consumers already struggling with housing affordability, tri-merge redundancy translates directly to higher mortgage costs with negligible risk mitigation benefit.
The MBA's push for federal intervention suggests the industry has concluded that market forces alone will not solve the problem.
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