MBA Study: Single Credit Score Shows Little Pricing Impact
In a HousingWire article published July 10, the Mortgage Bankers Association shared a new study on what would happen if lenders used a single credit...
In a HousingWire article published July 10, the Mortgage Bankers Association shared a new study on what would happen if lenders used a single credit score for mortgage underwriting instead of the current multiscore method. HousingWire is a subscription source, so you may hit a paywall. The short version is that moving to one score would have little effect on loan pricing or on guarantee fee revenue for Fannie Mae and Freddie Mac. You can read the coverage here.
At Informative Research, we see this as helpful context for a debate a lot of our clients are already following. The number of credit files a lender pulls, whether that is one bureau or all three from Equifax, Experian, and TransUnion, shapes both cost and workflow. A study like this adds real numbers to the single file conversation, though it does not settle it. The final call on single file credit still rests with the GSEs and their regulator, and IR will keep tracking it for clients.
For IR clients, the takeaway is to keep watching the single file credit discussion, because the MBA now has data suggesting the pricing risk of the change may be smaller than some expected.
Disclaimer: The views and commentary expressed in this blog are provided for informational purposes only and do not constitute legal, financial, or professional advice. Informative Research (IR) makes every effort to ensure the accuracy of the content at the time of publication, but we do not guarantee its completeness or timeliness. Readers should consult their own legal or business advisors before making decisions based on this information. References to third-party companies, products, or services are not endorsements.
Disclaimer: The views and commentary expressed in this blog are provided for informational purposes only and do not constitute legal, financial, or professional advice. Informative Research (IR) makes every effort to ensure the accuracy of the content at the time of publication, but we do not guarantee its completeness or timeliness. Readers should consult their own legal or business advisors before making decisions based on this information. References to third-party companies, products, or services are not endorsements.
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