Equifax, TransUnion stocks fall after FHFA criticism on pricing

Investing.com -- Equifax (NYSE: EFX) stock fell 2.3% and TransUnion (NYSE: TRU) stock dropped 2.5% after Federal Housing Finance Agency Director Bill Pulte criticized the credit reporting companies’ pricing practices.

Pulte expressed confusion about the credit bureaus’ pricing strategies, stating, "I do not understand what the credit bureaus are doing with their pricing - they are inviting a lot of scrutiny that is only intensifying by the day." He added that he had communicated with credit bureau CEOs on related issues but claimed his concerns were "falling on deaf ears."

The FHFA director’s comments came in response to a letter from the Mortgage Bankers Association, which reportedly highlighted that mortgage originators are facing 40% to 50% increases in credit reporting costs. The MBA has suggested requiring only one credit report for borrowers with scores of at least 700, rather than the current "tri-merge" approach that requires reports from all three major bureaus for mortgage originations through Fannie Mae and Freddie Mac.

TD Cowen analyst Jaret Seiberg noted that Pulte might focus on credit bureaus in coming months similar to his previous focus on FICO. Seiberg suggested the FHFA director could potentially embrace the MBA’s recommendation to reduce required credit reports for high-score borrowers as a way to lower homebuying costs.

The criticism comes amid broader Trump administration efforts to address housing affordability issues, with credit reporting costs becoming the latest target for potential reform.

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