A Small Cost That Protects the American Dream

Homeownership is a cornerstone of the American Dream, and responsible lending practices help ensure that dream remains within reach for millions of families. Tri-merge credit reporting—where lenders review credit reports from all three major bureaus and use the middle score—plays a key role in providing an accurate picture of a borrower’s creditworthiness.

Despite some claims that it drives up costs, the reality is that credit report fees make up only a tiny fraction of overall closing costs. As the graphic shows, credit reports account for roughly 0.5% of the average mortgage closing costs, while taxes, government fees, and settlement expenses make up the overwhelming majority.

In other words, eliminating tri-merge credit reporting would do little to reduce costs for homebuyers but could undermine the reliability and fairness of the mortgage approval process. Maintaining this system helps ensure lenders have the full picture when evaluating borrowers—protecting both consumers and the long-term stability of the housing market.