HousingWire Daily MBA’s Bob Broeksmit on credit scores and a possible GSE release
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Oct 22, 2025 Bob Broeksmit, President and CEO of the Mortgage Bankers Association, shares insights from the MBA Annual Conference. He discusses the recent approval of VantageScore as an alternative to FICO, highlighting its implications for competition in credit scores. Broeksmit challenges the need for tri-merge reports for high-score loans, arguing they're redundant. He also delves into the complexities of GSE conservatorship and the potential for capital changes, while emphasizing the need to avoid actions that could raise mortgage costs and impact affordability.
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Immediate Competition In Credit Scoring
- FHFA Director Pulte's decision lets lenders use VantageScore or FICO immediately, introducing real competition in credit scoring.
- Bob Broeksmit expects competition to lower costs for lenders and borrowers by January as implementation clarifies.
Rethink Universal Tri-Merge Requirement
- MBA wants the GSEs to stop requiring tri-merge credit reports for every loan to enable bureau competition.
- Broeksmit argues tri-merge is redundant for high-credit borrowers and drives unnecessary costs.
Work With Regulators On Phased Changes
- Engage with MBA, FHFA, Fannie and Freddie to shape any move away from mandatory tri-merges.
- Consider phased approaches that retain tri-merge for lower-credit loans while reducing it for higher-credit borrowers.