Andrew Davidson & Co Study Examines Credit Score Variances

In a recent press release published by Andrew Davidson & Co., Inc., the firm shared new research highlighting how credit score differences across bureaus could impact costs for both consumers and mortgage investors. The release outlines findings from a large scale dataset that looks at how single bureau reporting could compare to the traditional tri-merge approach.

According to the research:

• 35 percent of consumers showed at least a 10 point difference between one bureau score and the traditional tri-merge result
• 18 percent had a variance of 20 points or more
• Score gaps could affect loan eligibility, pricing, and investor risk depending on which report is used
• The study raises questions about cost savings versus potential downstream risk when reducing bureau inputs

For lenders, this research adds another layer to the ongoing conversation around single file or bi merge credit models. While reducing reports may lower upfront costs, score dispersion across bureaus can influence pricing, AUS findings, and secondary market execution. We are watching these developments closely and helping clients think through how model changes may impact credit workflows, waterfall strategies, and overall credit spend.