FHFA Update Eases Compliance Burdens, Encourages Credit Access

Jim Nussle

​Today, the Federal Housing Finance Agency announced it will retain the tri-merge credit report requirement and permit—but not require—the use of VantageScore 4.0 for loans delivered to Fannie Mae and Freddie Mac.
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America’s Credit Unions Chief Advocacy Officer Carrie Hunt issued the following statement:
“Today’s announcement is welcome flexibility for credit unions and the members they serve. By keeping the tri-merge credit report and allowing—but not requiring—the use of VantageScore 4.0, FHFA has helped avoid costly system overhauls while opening the door to more inclusive credit access. This thoughtful step reduces near-term compliance burdens, preserves vendor competition, and creates new opportunities to responsibly serve communities whose credit scores may skew lower.  We’ll continue working with FHFA to ensure that any future credit score changes support fairness, innovation, and the operational realities of community-based lenders.”

Background: This decision rolls back a 2022 proposal that would have mandated dual-score delivery (FICO 10T and VantageScore 4.0) and a bi-merge file format—posing substantial costs and IT challenges for credit unions.

New Letter Urges Clean NDAA Free of Financial Services Riders
As the Senate Armed Services Committee begins marking up the FY2026 National Defense Authorization Act (NDAA), America’s Credit Unions President/CEO Jim Nussle sent a letter urging lawmakers to reject unrelated amendments pertaining to interchange, rate caps, and military banking policy.

“These are unnecessary policy provisions that distract from the focus on more urgent national security concerns,” Nussle wrote. “Credit unions—especially the nearly 200 Defense Credit Unions—remain the best source for safe, affordable financial services for our men and women in uniform.”

Key Points from the Letter:

• Calls for a “clean” NDAA with no unrelated financial services amendments.
• Opposes inserting language on interchange fees, interest rate caps, or military base banking reforms.
• Emphasizes the value of defense credit unions, which serve over 40 million members and have supported military families for over a century.
• Reaffirms the strong bond between credit unions and military communities, grounded in affordability, service, and financial education.

Read the full letter here.

If you have questions about either development—or want to speak with our policy team about what’s ahead for the credit union movement—don’t hesitate to reach out to me or [email protected].

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