While alternative data can be used as a tool to expand credit access to unscored consumers, some industry experts cautioned lenders about turning away from the traditional credit reporting ecosystem.
HMDA compliance AI tool launched; law firm offers mortgage AI audit practice; federal court approves $110 million settlement involving Wells Fargo; NYDFS reinforces disparate-impact liability.
Denial rates for most mortgage products declined on an annual basis in 2025, though denials of applications for purchase mortgages via FHA and USDA increased slightly. (Includes data table.)
Matt Tully, chief compliance and customer success officer at Sagent, said the mortgage industry wants Reg. X updates to reflect experiences over the last decade.
Credit history was cited less by lenders last year as a reason for denying an application for a refinance, while debt-to-income ratio persisted as the top reason for rejecting applications for a purchase mortgage. (Includes data table.)
Members of a CFPB task force established during the first Trump administration are asking the bureau to consider implementing several of their recommendations tied to closing costs, internal reorganization and the bureau’s overall structure.
The CFPB said certain questions concerning barrier analysis, special emphasis programs and workforce demographics were contrary to President Trump’s executive orders.