Fair Isaac plunges as regulator moves to end its credit-score dominance
-16.68% to $932.26 from $1118.93
What moved FICO
- FHFA Director Bill Pulte directed Fannie Mae and Freddie Mac to immediately approve VantageScore 4.0 for use by all lenders, expanding what had been a roughly 50-lender pilot program into a sweeping mandate.
- Pulte said in social media posts that FICO “has enjoyed a monopoly. No more,” and accused Equifax, Experian and TransUnion of overcharging consumers on credit reports.
- FICO has charged $10 or more per credit-score pull on mortgage applications, while VantageScore’s owners have advertised prices around $0.99 per pull.
- Shares of credit bureaus Equifax and TransUnion also fell alongside FICO as investors weighed the impact of a broader shift toward VantageScore.
Sources: Bloomberg · The Motley Fool