Pulte: 'cartel-like' bureaus should cut costs, eyes bi-merge

The way consumer credit is scored and reported is facing a massive shake-up that could lower costs for high-ticket retailers and home builders. Bill Pulte, a prominent figure in the housing industry, is publicly challenging the 'tri-merge' credit report standard. Currently, lenders are often required to pull reports from all three major bureaus—Equifax, Experian, and TransUnion—which drives up administrative costs for every financing application. Pulte argues this system acts like a cartel and that a 'bi-merge' (using only two bureaus) would be more efficient and affordable. Simultaneously, the Federal Housing Finance Agency (FHFA) is opening the door for lenders to use VantageScore alongside traditional FICO scores. For operators in the home improvement and mortgage-adjacent space, this represents a shift toward more competitive credit reporting. If the industry moves to a bi-merge model or adopts alternative scoring models, it could reduce the 'junk fees' associated with credit pulls. This makes it cheaper to process applications and potentially increases the pool of qualified buyers by using more modern scoring algorithms that look beyond traditional credit history.

Source: American Banker — Top News

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