The Mortgage Bankers Association is evaluating the feasibility of transitioning to a single credit report system for mortgage underwriting, diverging from the FHFA's proposed bi-merge system. Bob Broeksmit, the CEO of the MBA, emphasized this shift could enhance alignment with consumer finance practices and help control rising credit reporting costs, projected to increase 20% by 2025. He argues that a single report is viable and poses no significant risk to government-sponsored enterprises (GSEs), given that credit scoring isn't the basis for their underwriting decisions.
Bob Broeksmit highlighted that a single credit report for mortgages, already common in other lending industries, could be feasible without risking GSE financial stability.
Broeksmit stated that early discussions indicate a shift to a single report for mortgages aligns with risk standards and could streamline the underwriting process.
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