Leaders at the three major credit bureaus, which own VantageScore, expect to see strong revenues and profits as the GSEs allow VantageScore to compete with FICO.
Leaders at Equifax and TransUnion are optimistic that the GSEs’ adoption of VantageScore will lead to revenue moving from FICO to credit bureaus. The officials also defended the tri-merge score process at the GSEs.
The new option allows tri-merge resellers to calculate and deliver FICO scores directly to customers, bypassing the big credit bureaus. Experian countered with a move involving VantageScore 4.0.
Rising PTI ratios for credit cards, home equity lines of credit and student loans were most positively correlated with future mortgage delinquencies, according to new research from TransUnion.
Although industry stakeholders look forward to the rental payment data and cash flow underwriting capabilities of VantageScore 4.0, most expect the transition to take a while.
The Mortgage Bankers Association has suggested the FHFA end its tri-merge process, replacing it with a single credit report rather than the bi-merge model as currently planned.
Industry trade groups noted that the increase comes on top of a 400% price hike over the past two years. They also argued that the credit re-porting bureaus will inevitably add additional price hikes.
Complaints filed with the CFPB increased by 23.0% in the third quarter. And for the first nine months of the year, complaint volume nearly doubled on an annual basis, led by issues with credit reports. (Includes two data tables.)
Consumer ire toward financial services and products doesn’t seem to be abating, with complaints to the CFPB hitting a record high in the second quarter of 2024. (Includes two data tables.)