This week’s housing and mortgage news spotlights the drop tri-merge debate as the Mortgage Bankers Association (MBA) intensifies its push to overhaul the outdated tri‑merge credit report requirement used for government‑sponsored enterprise (GSE) loans. Alongside this policy fight, mortgage application volume showed a downward trend in the latest MBA weekly data, and the broader U.S. job market is showing signs of slowing—factors that all intersect with credit access and housing demand. Here’s what mortgage and finance professionals should understand about these developments and what they could signal for early 2026.
MBA’s Call to Drop Tri‑Merge Mandate
The Mortgage Bankers Association is urging the Federal Housing Finance Agency to drop tri‑merge credit score requirements for loans sold to Fannie Mae and Freddie Mac, calling the three‑bureau credit pull system outdated, costly, and anticompetitive.
MBA leaders argue the mandatory use of tri‑merge reports drives up credit report costs year after year, with little added value compared to single‑report models in other areas of consumer finance. They contend that simplifying the credit data requirements could lower lender costs, increase competition among bureaus, and ultimately benefit borrowers.
This move aligns with broader industry trends toward modernizing underwriting processes and reducing operational friction in mortgage lending.
Mortgage Applications Dip in Latest MBA Weekly Survey
Mortgage application activity declined for the week ending December 12, with the MBA’s Market Composite Index down roughly 3.8%. Both refinance and purchase applications saw declines—refinances by about 4% and purchases by around 3%.
These drops reflect continued rate sensitivity and seasonal slowdowns, though purchase demand remains higher year‑over‑year. Volatility has been common throughout the latter half of 2025 as borrowers respond quickly to changing rate environments.
These figures serve as a reminder that originators need to remain agile, adjusting strategies to meet shifting borrower sentiment and economic realities.
Job Market Shows Signs of Cooling
Recent employment data shows that job growth is slowing, with fewer new jobs added in November and previous months’ gains being revised downward. The unemployment rate has ticked slightly higher, suggesting a gradual cooling in the labor market.
This trend could dampen consumer confidence heading into 2026, especially among would‑be homebuyers considering long‑term financial commitments. However, slower job growth could also ease inflation pressures and encourage the Federal Reserve to lower rates sooner, which would support future mortgage activity.
As always, the connection between jobs and housing remains vital—what happens on the employment front can ripple quickly into the real estate market.
Loan Officer Perspective
Loan officers should take note of the MBA’s efforts to drop tri-merge as a signal that credit access reform is gaining traction. If adopted, these changes could streamline the application process, reduce borrower costs, and make approvals more predictable—potentially unlocking more business. Additionally, monitoring job market cooling and rate movements will be key for timing outreach and helping clients navigate both purchase and refinance opportunities.
Real Estate Agent Perspective
Real estate agents can benefit from staying informed on credit and economic policy updates, especially as changes like a tri‑merge rollback could impact buyer qualification timelines and closing efficiency. A cooling job market may influence buyer urgency, but it also opens doors for value‑focused conversations. Agents who can help buyers and sellers understand how economic shifts intersect with financing will stand out as informed, trusted advisors.
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