Why TransUnion (TRU) Shares Are Trading Lower Today

What Happened?

Shares of credit reporting company TransUnion (NYSE:TRU) fell 4.2% in the afternoon session after it received criticism from the Federal Housing Finance Agency (FHFA) over its pricing practices. 

The agency's director, Bill Pulte, expressed confusion about the pricing strategies of credit bureaus, stating his concerns were "falling on deaf ears." The comments followed a letter from the Mortgage Bankers Association, which highlighted that mortgage originators faced 40% to 50% increases in credit reporting costs. The association suggested a change from the current requirement of three credit reports to just one for borrowers with high credit scores. This was proposed as a way to lower homebuying costs, signaling that the credit reporting industry was facing growing scrutiny over its pricing models amid broader efforts to address housing affordability.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy TransUnion? Access our full analysis report here.

What Is The Market Telling Us

TransUnion’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 11.2% on the news that Fair Isaac (FICO), the company behind the widely used credit score, announced a new program to license its mortgage scores directly to lenders. 

This move effectively bypassed the traditional role of the three major credit bureaus, including TransUnion. The new "FICO Mortgage Direct License Program" allowed mortgage lenders to get credit scores straight from FICO, potentially pressuring the earnings and margins of companies like TransUnion, which acted as intermediaries. FICO also announced it would offer the scores at a 50% discount compared to the industry average, a change expected to provide immediate cost savings to mortgage lenders. The news sent shockwaves through the industry, as shares of fellow credit bureaus Equifax and Experian also tumbled, while FICO's stock soared.

TransUnion is flat since the beginning of the year, and at $83.27 per share, it is trading 16.9% below its 52-week high of $100.25 from February 2025. Investors who bought $1,000 worth of TransUnion’s shares 5 years ago would now be looking at an investment worth $889.13.

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