He questioned the reasoning behind the price hikes, particularly in a tight housing market where affordability is already a concern.
“While FICO and the credit reporting agencies are private companies free to set their prices as they wish, their flawed or mostly opaque reasoning for raising prices on a long-established product is unacceptable,” he stated. “Furthermore, justifying the price increases by focusing on total closing costs is not the right approach.”
Broeksmit also pointed out that lenders are often left absorbing these fees in cases where a credit report is pulled but a loan isn’t closed. He urged federal agencies, including housing regulators, the Consumer Financial Protection Bureau, and the Federal Trade Commission, to examine how government-required credit reporting practices may contribute to rising consumer costs.
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“When the government mandates the use of specific providers, those providers should act responsibly and with transparency,” he added. “Consumers deserve a fair and transparent process, which is why we renew our call for federal housing regulators, as well as the Consumer Financial Protection Bureau and the Federal Trade Commission, to examine the role the government’s requirements play in driving up these consumer credit transaction costs.”