TransUnion, Equifax debut ‘score later’ tools for mortgage lenders

TransUnion and Equifax are letting mortgage lenders access borrower credit files without immediately buying scores and add scores later as needed, the companies announced this week. The move aims to cut credit costs and better align spending with loans that are likely to close. TransUnion on Thursday announced First Look Functionality for Mortgage, which allows lenders to review credit insights before buying scores, following its extension of 99-cent VantageScore 4.0 mortgage pricing through 2028 when pulled alongside a FICO score. Equifax, meanwhile, launched Equifax Mortgage Score Select, which lets lenders and brokers pull a mortgage credit file either with a selected score or without a score during loan origination. Lenders can repull the file within 24 hours for $1, in addition to the cost of whatever mortgage score they choose, the company said. It follows Equifax’s decision to maintain $1 VantageScore 4.0 mortgage credit score pricing through the end of 2028. Both launches come as originators face persistent margin compression and new score requirements. The Federal Housing Administration (FHA) will accept Classic FICO, FICO 10T or VantageScore 4.0 for eligible mortgages sta...