Weekly Real Estate News
Equifax reported a 15% increase in U.S. mortgage-related revenue for the third quarter, even as the credit bureau warned that the mortgage market weakened sharply late in the period and is likely to remain under pressure through year-end.
The Atlanta-based company reported total third-quarter revenue of $1.693 billion, up 10% from a year earlier, and net income attributable to Equifax of $211.7 million, up 32%. Yet management cut the midpoint of its full-year revenue forecast to $6.661 billion, citing weaker expected mortgage demand. The figures were released October 20 in Equifax’s earnings announcement.
Equifax’s mortgage business has two distinct components. U.S. Information Solutions, which includes credit reporting, recorded a 28% rise in mortgage revenue. Workforce Solutions, which sells employment and income verification products, reported approximately flat mortgage revenue. The overall U.S. mortgage figure grew 15%, according to the company.
The divergence matters to lenders confronting higher credit-report and verification expenses. Revenue earned by a data vendor can grow because of pricing, product mix or market share even when fewer borrowers apply for mortgages. Equifax’s percentage increase should not be read as evidence that U.S. mortgage originations rose 15%. The company explicitly described a weaker mortgage market during the latter half of the quarter.
Higher mortgage rates weigh on the outlook
Chief Executive Mark Begor said the slowdown followed a substantial increase in mortgage interest rates. Equifax expects the late-quarter weakness to persist for the rest of 2026. Its new full-year revenue guidance ranges from $6.646 billion to $6.676 billion, while adjusted earnings-per-share guidance stands at $8.45 to $8.55.
The company is maintaining its high-single-digit growth expectation for businesses outside the mortgage segment. Workforce Solutions generated $693.9 million of third-quarter revenue, up 7%, while U.S. Information Solutions recorded $599.1 million, up 13%. International revenue rose 9% to $399.5 million. These segment totals cover many services beyond mortgage lending.
Equifax’s earnings report arrives as lenders adapt to competition among mortgage credit-scoring models. WRE previously reported Equifax’s new mortgage score-repull offer and changes in credit-bureau pricing. Those product announcements are separate from the company’s quarterly financial results, although they help explain why mortgage-related vendor revenue can move differently from origination volume.
Management also highlighted investment in data products and artificial intelligence. Equifax said its new-product vitality index exceeded 17% during the quarter, and it is pursuing a $150 million productivity target tied to AI and operational changes. These are company metrics and targets; the earnings release does not isolate how much of the mortgage revenue gain came from any individual product.
Equifax returned $158 million to shareholders through repurchases and dividends during the quarter. It expects to close its acquisition of Mexico-based Círculo de Crédito in the fourth quarter, subject to completion of the transaction.
For mortgage brokers and lenders, the practical question is whether competition and automation lower per-file verification costs as origination volumes contract. Equifax’s report establishes strong vendor earnings alongside a deteriorating mortgage-volume outlook, without answering what lenders will pay on individual loan files next quarter.
Illustrative photograph: Aaron Lefler / Unsplash.
