(from Housingwire.com)
Credit report costs are about to surge again, by as much as 50%. and this could mean higher expenses for lenders and, eventually, borrowers. It’ll be the fourth straight year of price hikes, and the increase is hitting at the exact moment the industry is trying to modernize how credit is evaluated.
The jump comes from a mix of factors: FICO’s updated scoring model, new restrictions on trigger leads beginning in March, and the slow rollout of VantageScore 4.0 despite its approval by Fannie Mae and Freddie Mac. Resellers say that once you add together higher bureau data fees and FICO royalties, the total increase averages roughly 43% over 2025 pricing.
The major tension point is between FICO and the three credit bureaus. FICO argues it only sets the royalty price and that bureaus are raising their own fees to make up for lost revenue. The bureaus push back, some offering discounts on VantageScore and claiming competition is improving. Meanwhile, the Mortgage Bankers Association blasted the entire system as an outdated “government-granted oligopoly” that ultimately makes mortgages more expensive for consumers.
To cope, lenders are looking at new workflows, like ordering a single bureau at first and waiting to pull a full tri-merge later, and even considering upfront credit-report fees from borrowers. But until VantageScore 4.0 is fully operational and resellers can use FICO’s new direct program, everyone is stuck in a wait-and-see mode.
What was once a basic step in every mortgage is now becoming a growing cost center in the housing process.
Read more here
Sellers Are Pulling Their Homes Off the Market at the Fastest Pace in Nearly a Decade
(from CNBC.com)
Home sellers are backing out of the market at the highest rate in eight years, and it’s happening because the momentum has flipped. Weak buyer demand, softer prices, and economic uncertainty are making homeowners rethink whether now is the right time to sell.
Nearly 85,000 sellers delisted their homes in September, a 28% jump from last year. And it’s not a mystery why: 70% of September listings sat on the market for 60+ days, creating that “stale listing” effect sellers hate. Rather than accept a low offer or multiple price cuts, many are choosing to wait it out.
Some sellers are adjusting, and hard. Zillow says the typical home saw $25,000 in cumulative price reductions in October, tying the largest cuts they’ve ever recorded. Even then, buyers are slow to move.
Interestingly, delistings are keeping inventory tighter than it appears. When tens of thousands of homes vanish from the active pool, it artificially props up sale prices. And with only 1 in 5 delisted homes being relisted quickly, the slowdown is likely to intensify as we head into the winter lull.
Five-year price growth is still huge, up 50%, but sellers who bought in just the last couple years now face potential losses. Redfin says 15% of homes delisted in September were at risk of selling at a loss, the highest level in five years.
We’re in a weird stretch where buyers aren’t motivated, sellers don’t want to budge, and delistings are shaping the market just as much as new listings. The reset button may not get tapped until spring. Blame it on the holidays I guess!
Read more here
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