Emmaline Aliff of Equifax joins Dr. Amy Crews Cutts, Chief Economist at AC Cutts & Associates, to unpack the real costs and competitive dynamics of mortgage credit reporting. They dig into what the data actually shows about tri-merge pricing, lender negotiation power, fallout loans, and the entry of VantageScore.

In this episode:

What is the true cost of pulling a credit report for a mortgage?

The cost of a mortgage credit report usually falls within a wide range—from around $40 up to about $240 per file, depending on factors like the number of borrowers and the products included (such as trended data or monitoring services). While some lenders cite an average cost around $155, the actual cost is often driven by how many borrowers are on the application, how many times credit is pulled, and which ancillary services are added.

Why do lenders say credit reports are “too expensive”?

Many lenders feel credit reports are expensive not because of the unit price, but because of fallout—loans that never close. When a lender pulls credit and the borrower doesn’t complete the loan, the lender usually eats that cost. Unlike appraisals, credit report fees are often not collected upfront, so unrecovered costs on fallout loans can make credit reporting feel disproportionately expensive.

How much does a credit report actually matter in the total cost of a mortgage?

In the context of a full mortgage transaction, the credit report fee is typically a small fraction of total closing costs and prepaid expenses. Even if a report costs $60–$150, that’s minimal compared to items like taxes, insurance, and appraisal fees. The real financial impact often comes from how credit information influences interest rates and approvals, not just the report fee itself.

What is a tri-merge credit report and why does it exist?

A tri-merge credit report combines data from the three nationwide credit reporting agencies—Equifax, Experian, and TransUnion—into one consolidated file. This helps:

• Reduce blind spots by capturing regional and portfolio differences between bureaus
• Give investors and GSEs (Fannie Mae, Freddie Mac) a more complete view of borrower risk
• Support underwriting models that rely on rich, multi-bureau data rather than a single view

Tri-merge helps maintain investor confidence in mortgage-backed securities by reducing data gaps and gaming risk.