Mortgage Bankers Association Asks Federal Regulators to Change Credit Check Requirements

The Mortgage Bankers Association has asked regulators to revisit requirements for mortgage lenders to check credit reports.

According to the Association, the cost for lenders to check credit from three different credit bureaus could rise by almost 50% in 2026, impacting competition.

While the cost is small compared to overall closing costs on a house, it impacts competitive lending, while banks increasingly face alternative lending competitors from outside the traditional banking industry.