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Tri-Merge to Bi-Merge: A Look at the Repercussions to the Credit Ecosystem

In October 2022, the Federal Housing Finance Agency (FHFA) announced its intention to use two credit bureaus (bi-merge) instead of three (tri-merge) to determine a borrower’s effective credit score when applying for a mortgage. To understand the impact of this decision, TransUnion simulated scores in a bi-merge scenario and extrapolated the results across the US credit population. The analysis shows significant, unintended, negative consequences for both consumers and American taxpayers:

  • Consumers will either pay more interest on their mortgages or become ineligible, enhancing economic disparity and widening the home ownership gap.
  • Affordability miscalculations and insufficient risk coverage will introduce billions of dollars of risk — which would likely be taken on by other borrowers or US taxpayers.

To learn more about TransUnion’s study and findings, download the analysis.



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