New TransUnion Analysis Examines Repercussions Of Federal Housing Finance Agencys Proposed Move From Tri-Merge To Bi-Merge
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The Federal Housing Finance Agency's (FHFA) proposed change to use two instead of three credit reports during the mortgage application process could result in two million consumers becoming ineligible for a government-sponsored enterprises (GSEs) mortgage, according to an analysis by TransUnion (NYSE:TRU). The change could also lead to 600,000 new mortgage borrowers per year paying more in interest. The most affected consumers are likely to be Black, Hispanic, low-to-moderate income (LMI) and first-time homebuyers. The change could also increase default risk and result in GSEs losing out on $4 billion in risk-based interest fees annually.
October 16, 2023 | 12:18 pm
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NEGATIVE IMPACT
TransUnion's analysis suggests that the FHFA's proposed change to use two credit reports instead of three during the mortgage application process could have significant negative impacts on consumers and the mortgage industry. This could potentially affect TransUnion's business as it could lead to a decrease in the demand for its credit reports.
The proposed change by the FHFA could lead to a decrease in the demand for credit reports, which could negatively impact TransUnion's business. Additionally, the potential negative impacts on consumers and the mortgage industry could lead to regulatory scrutiny and potential changes in regulations that could further affect TransUnion's business.
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