Are Credit Report Costs Making Mortgages More Expensive Than Necessary?

Credit report fees are climbing fast—and borrowers may be paying more without realizing it. With costs projected to jump 40–50% in 2026, lenders are pushing Congress to rethink long-standing credit report requirements. Tim Lucas and Craig Berry break down what’s driving the surge, what changes are being proposed, and who stands to benefit—or lose.In this episode you’ll learn:How much credit report costs are rising: Mortgage credit report fees are projected to increase 40–50% in 2026 after years of steady hikes.Why lenders must pull three reports: Mortgage rules require credit checks from Equifax, Experian, and TransUnion, even though each bureau often shows similar data.What the mortgage industry wants to change: Lenders are lobbying Congress to allow one or two credit reports instead of three to reduce application costs.Why risk increases for some borrowers: Consumers with lower scores or thin credit files may face higher error risk if fewer reports are used.The hidden cost of rejected applications: Lenders pay for credit reports even when loans don’t close, with rejection rates sometimes exceeding 20%.Why savings may not reach borrowers: Even if costs fall, lenders may not be required to pass those savings along to applicants.How credit scoring rules are already changing: The Federal Housing Finance Agency now allows lenders to choose between Classic FICO and VantageScore 4.0 for loans sold to Fannie Mae and Freddie Mac.The big question: Can costs be lowered without undermining fairness, accuracy, and borrower protections?Read the full article: https://www.mortgageresearch.com/articles/are-credit-report-fees-too-high-mortgage-lenders-want-lawmakers-to-act/