FHFA is expected to let mortgage lenders use two credit bureaus instead of three for Fannie Mae and Freddie Mac loans. Here’s why that makes checking your credit reports more important.
If you’ve applied for a mortgage, your lender almost certainly pulled your credit from all three major bureaus: Equifax, Experian and TransUnion. That could soon change, and it could make a mistake on just one of your reports more costly.
What’s changing
On October 1, 2026, HousingWire and other outlets reported that the Federal Housing Finance Agency (FHFA) plans to direct Fannie Mae and Freddie Mac to stop requiring a “tri-merge” credit report. Today lenders combine reports from all three bureaus. Under a “bi-merge” approach, lenders would use reports from two of the three.
Fannie Mae and Freddie Mac stand behind a large share of U.S. home loans, so their rules shape what most mortgage lenders do.
According to those reports, a formal announcement is expected around October 12, with the change taking effect one to three months later. It hasn’t been finalized, and the details could change.
Why FHFA wants to do this
The stated goal is to lower closing costs. Pulling and merging three reports costs more than pulling two. The idea isn’t new. It was considered under the previous administration but delayed over concerns about how accurately lenders could price risk.
Those concerns haven’t gone away. Eight Republican senators had earlier urged FHFA to halt the change, warning about a “reduction in the accuracy and predictive power of data.”
FHFA has also recently allowed lenders to use VantageScore credit scores alongside FICO scores for these loans.
Why errors matter more with two reports
Credit reports are wrong more often than most people think. Common errors include accounts that belong to someone else, debts that were paid but still show a balance, late payments that weren’t late, and files mixed up with a relative or someone with a similar name.
Right now, an error on one report sits next to two other reports, and a lender reviewing all three may notice the difference. With only two reports, an error at one bureau carries more weight. It could affect whether you’re approved, your interest rate or the fees you pay.
You also may not know in advance which two bureaus your lender will use.
What to do before you apply
- Get all three reports. You can get free reports from each bureau at AnnualCreditReport.com.
- Read them line by line. Check names, addresses, accounts, balances, payment history and any collections or public records.
- Dispute errors in writing. Send a dispute directly to each bureau reporting the error. Explain what’s wrong and include copies of documents that prove it. Keep copies of everything and note when you sent it.
- Give it time. Under the Fair Credit Reporting Act, a bureau generally has 30 days to investigate a dispute. Start well before you plan to apply.
- Check the results. Get updated reports after the investigation to make sure the error was actually fixed.
When a dispute doesn’t fix the problem
The Fair Credit Reporting Act requires credit bureaus to follow reasonable procedures to keep reports accurate, and to conduct a real investigation when you dispute something. Companies that report information about you have duties too.
If you disputed an error properly and it’s still on your report, or it came back after being removed, you may have a claim. The FCRA allows consumers to recover damages in some cases, and it lets you recover attorney’s fees when you win. That means many consumers can get help without paying out of pocket.
Talk to us
If an error on your credit report won’t go away, or it’s affecting a mortgage or other loan, we’re glad to review your reports and your dispute history. Contact Ginsburg Law Group for a free consultation.
This post is for general information and isn’t legal advice. Reading it doesn’t create an attorney-client relationship.
