Speaking at the Mortgage Bankers Association Secondary and Capital Markets Conference in New York City, Chopra criticized the steep increases in charges from score provider FICO, or the Fair Isaac Corporation, the three credit reporting agencies and resellers.

Calling for more accountability, he invited comments from lenders as the bureau looks for solutions to address the "price gouging" in the market. 

"We are eager to hear from lenders and will look at possible rulemaking and guidance to improve competition, choice and affordability," he said.

The reporting agencies, Equifax, Experian and Transunion, typically set wholesale prices resellers pay, which is then passed on to their lenders and consumers. With reports required for sale to the government-sponsored enterprises, mortgage businesses often have little choice but to pay.

"With a captive customer base, vendors have implemented annual price increases that far outpace inflation," Chopra said. "And in order to get the credit and credit reports, mortgage lenders generally must pay twice, once to confirm eligibility, and once just before the loan closes."

During the MBA session that was sponsored by FICO, Chopra called out the significant change in pricing structure for credit scoring at the end of last year, resembling a flat fee rather than volume-based model. Among the changes was a hike to soft-credit pulls that put them at the same level as hard pulls, despite differences in the information provided. 

Fees multiply when multiple applicants are on the mortgage and investors also require reports, meaning lenders often pay for the same information six or 12 times, Chopra said. 

Compounding costs, credit reporting agencies have found a way to profit from inaccuracies mortgage lenders find in a report, thanks to a rapid rescoring program, which Chopra referred to as a "pay-to-play" service. 

"A report full of bad data is another opportunity for these companies to leverage their position as indispensable market utilities and extract yet more money from consumers and lenders who have no other options," he said. 

Following the announcement from FICO late last year, lenders sharply criticized its moves, saying, ultimately, that they end up being passed down to the consumer. 

As companies generally don't charge borrowers upfront for credit report costs, "Lenders generally have to eat the costs of the initial applicant screening for applicants who don't qualify or decide not to pursue a loan," he said. 

"In some sense, borrowers that close aren't just paying for the credit reports and scores for themselves, they're also paying for inflated fees on the applicants who don't close," he said.

Chopra also recommended capital markets to develop solutions for investors to assess mortgage pools and rely less on mandated credit scores.

In a discussion with MBA CEO Bob Broeksmit, Chopra also pushed back on mortgage-industry criticism of his stance toward so-called "junk fees" across the banking industry. In both his opening remarks earlier in the day and discussion with Chopra, Broeksmit took issue with the "junk fee" label and whether certain fees qualify as such if they are spelled out in advance. 

Chopra responded that "a junk fee isn't just what's hidden." In the CFPB's opinion, it also covers what is not subject to competition, or if it applies to services nobody wants. 

"I'm happy that you disclose some of these ripoffs, but they shouldn't be a ripoff," Chopra said.