WASHINGTON– America’s Credit Unions has welcomed a move by the Federal Housing Finance Agency that it will retain the tri-merge credit report requirement and permit—but not require—the use of VantageScore 4.0 for loans delivered to Fannie Mae and Freddie Mac.
“Today’s announcement is welcome flexibility for credit unions and the members they serve,” said America’s Credit Unions chief advocacy officer, Carrie Hunt, in a statement. “By keeping the tri-merge credit report and allowing—but not requiring—the use of VantageScore 4.0, FHFA has helped avoid costly system overhauls while opening the door to more inclusive credit access. This thoughtful step reduces near-term compliance burdens, preserves vendor competition, and creates new opportunities to responsibly serve communities whose credit scores may skew lower. We’ll continue working with FHFA to ensure that any future credit score changes support fairness, innovation, and the operational realities of community-based lenders.”
The Background
By way of background, America’s Credit Unions explained the decision rolls back a 2022 proposal that would have mandated dual-score delivery (FICO 10T and VantageScore 4.0) and a bi-merge file format—posing substantial costs and IT challenges for credit unions.
