"Eric Ellman, president of the National Consumer Reporting Association (NCRA) said we learned from the 2008 housing crisis that more data is better than less data, especially when the financial stakes are so high. He added, The cost of being right for spending an extra $100 is so much stronger a case to make than the downside risk for a consumer who might lose thousands over the lifetime of a loan."
"Because lenders and creditors are not required to furnish information to all bureaus, reporting across the system can be uneven. Our members compete all the time on data the better data we have, the better our report is, said Dan Smith, the president and CEO of the Consumer Data Industry Association (CDIA), a trade association representing the consumer reporting industry."
"Smith said reporting varies by institution: major banks and national credit card, mortgage and auto lenders typically report to all three bureaus, while smaller lenders, debt buyers, community banks, credit unions and alternative data providers may report to only one or two. There are also differences in the timing of when data is reported, said Ellman."
Opponents argue that maintaining tri-merge credit files protects borrowers by revealing errors and missing data across bureaus and prevents lenders from gaming scores by cherry-picking higher files. Advocates for multiple files contend that more complete data reduces systemic risk and preserves accurate borrower pricing across mortgage investors including Fannie Mae and Freddie Mac. The three major credit bureaus receive different data from creditors, and many consumers have thin or no credit files because reporting is uneven. Major national lenders typically furnish data to all three bureaus, while smaller institutions may report to one or two. Federal rules govern furnished data content but no timing standard exists.
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