Industry Leaders Discuss Data's Role in Redefining the Mortgage Process

The future of credit reporting and its profound impact on the mortgage industry recently took center stage at the Mortgage Bankers Association Annual Convention and Expo, as an unprecedented panel of leaders from the Nationwide Consumer Reporting Agencies —Equifax, Experian and TransUnion—joined HousingWire CEO Clayton Collins for a discussion on innovation and financial inclusion.

The conversation, featured on the Market Pulse podcast, addressed key topics including regulatory shifts, the accelerating adoption of alternative data, and the proposal to reduce the standard three credit reports to two.

The Power of Data and Financial Inclusion

A central theme was the vital role of data in today's mortgage ecosystem. “More data is better for the consumer,” said Joel Rickman, General Manager & SVP, U.S. Mortgage and Verification Services at Equifax. “Richer data helps maintain safety and soundness while expanding the pool of qualified borrowers, driving financial inclusion.”

Considering new data sets is crucial for building more accurate credit profiles for consumers who have historically been underserved or "credit invisible." These differentiated data sources can include:

• Buy Now, Pay Later (BNPL) accounts

• Rental and utility payments

• Short-term lending data

• Cash-flow management attributes

Bi-Merge Debate and Regulatory Progress

The 'bi-merge' debate was recognized as a major concern across the industry. Reducing data would increase risk for lenders and could negatively impact consumers by creating gaps in credit history, potentially leading to higher loan pricing or denied applications.

"If we're talking about what is the best way to get consumers into homes and to qualify more consumers, it is more data,” said Rickman. “The absence of data punishes the consumer from a pricing perspective, and we maintain that safety and soundness on the back end so the American taxpayer is backing good quality loans."

Innovation and regulation can effectively coexist. The Federal Housing Finance Agency's move to adopt modern scoring models, such as VantageScore® 4.0, is a prime example of policy-enabling progress by allowing new, broader data models to enter the market.

Innovation and Education will Drive the Industry Forward

The industry has a collective goal of elevating consumer financial capability and encouraging a healthy, more inclusive credit ecosystem. Providing consumers with the resources they need to increase their financial capability is an important part of the commitment Equifax has made to help consumers live their financial best. In addition to helping consumers better understand their credit health and feel more empowered to take control of their financial well-being, consumer-friendly solutions are now available to help them more easily assess their financial health and empower them to make more informed financial decisions. 

Preparing for VantageScore Adoption

Looking ahead, it will be critical for lenders to proactively prepare for the 2026 adoption of VantageScore by government-sponsored enterprises. This can include taking advantage of offers designed to encourage adoption, such as the recent move by Equifax to offer VantageScore 4.0 mortgage credit scores at an over 50% reduction from FICO 2026 prices through the end of 2027, and to offer free VantageScore 4.0 credit scores to all Equifax customers in mortgage, automotive, card and consumer finance who purchase FICO scores until the end of 2026. Lenders can also access tools to evaluate how the new score performs in various underwriting and portfolio management scenarios.

To listen to the full podcast, click here.