Waukesha Times

WASHINGTON, DC – Congressman Scott Fitzgerald (WI-05) has introduced the Accurate Credit Reporting for Homebuyers Act, aimed at maintaining the requirement for Fannie Mae and Freddie Mac to obtain a credit report and credit score from each of the three national credit bureaus when they provide a residential mortgage loan. This requirement is commonly known as the “tri-merge requirement.”

In a statement, Rep. Fitzgerald criticized the FHFA's proposal to transition to a bi-merge credit reporting requirement, stating, “President Biden’s financial regulators seem to rely more on ideology than facts and data." He further added, “My bill corrects this misguided proposal by codifying the long-standing requirement that Enterprises obtain a credit report and credit score on a borrower from each of the three national credit bureaus.”

The background of the bill stems from the Federal Housing Finance Agency (FHFA) announcing on October 24, 2022, that Fannie Mae and Freddie Mac would shift to a bi-merge average and move away from the traditional tri-merge requirement for credit reports. While the FHFA suggested that this change would enhance market competition and maintain necessary risk management information, Rep. Fitzgerald highlighted that no supporting analysis or data has been provided to justify this expectation.

The Accurate Credit Reporting for Homebuyers Act aims to address concerns surrounding the FHFA's proposed changes and ensure that borrowers have equal opportunities to obtain mortgages regardless of their credit scores, as long as they are credit-worthy.

This bill marks a significant step in the ongoing debate over credit reporting practices for homebuyers and aims to uphold the current standards that have been in place for years.