Mortgage industry has ‘reached the breaking point’ over soaring credit reporting costs

The headline refers to a growing backlash from U.S. mortgage lenders and brokers against steep, multi‑year increases in the price of mortgage credit reports and scores, which some say are becoming unsustainable.​

What is happening

• Credit report and score costs for mortgages (typically “tri‑merge” reports pulling data from Equifax, Experian, and TransUnion plus FICO scores) have risen sharply over the last several years, with lenders reporting total increases of 70–200% or more since around 2022.​

• For many independent mortgage banks, the all‑in credit cost per closed loan (including reports on applications that never close) has risen from roughly tens of dollars to several hundred dollars, significantly eroding already thin profit margins.​

Why lenders say it’s a ‘breaking point’

• Industry groups such as the Mortgage Bankers Association and Community Home Lenders Association argue that the three national bureaus plus FICO operate as an effective oligopoly in conforming mortgages, allowing repeated, outsized price hikes with little ability for lenders to switch.​

• Lenders report 2026 pricing letters showing tri‑merge credit report and score bundles jumping by as much as 45–50% in a single year, on top of prior hikes, prompting some to describe the situation as a breaking point and to warn of potential pullback in lending or changes to how borrowers are charged.​

Impact on borrowers and the market

• Many lenders historically absorbed most of the credit report cost, but as invoices climb over $150–$200 per tri‑merge and total per‑loan credit costs reach several hundred dollars, some are beginning to charge borrowers upfront or increase fees at closing.​

• Trade groups warn that if unchecked, higher credit reporting costs will ultimately feed into higher borrower fees, reduced competition (as smaller lenders exit), and further pressure on housing affordability in an already high‑rate, high‑price market.​

Regulatory and industry response

• The FHFA, which oversees Fannie Mae and Freddie Mac, has signaled concern and pledged to “protect consumers” from rapidly rising credit report fees, while also rolling out a new credit score framework that introduces VantageScore alongside FICO in hopes of fostering more competition.​

• Credit bureaus and FICO defend their pricing by pointing to data, compliance, and technology costs, but advocacy groups are pushing for greater transparency, caps on markups, and reforms to how credit data is procured for government‑backed mortgages.​