US EditionWhat's Going On With Fair Issac (FICO) Shares Thursday? - Fair Isaac (NYSE:FICO)
FICO’s new program cuts average score fees by 50%, charging $4.95 per score and $33 per funded loan to increase transparency and reduce costs for mortgage lenders.
- On Thursday, Fair Isaac Corp. launched a Mortgage Direct License Program letting tri-merge resellers distribute scores directly, bypassing the three nationwide credit bureaus.
- After the FHFA allowed VantageScore 4.0 as an underwriting alternative, Federal Housing Finance Agency Director Bill Pulte praised FICO's recent creative solutions amid earlier pricing criticisms.
- FICO is offering two alternate pricing models to increase choice, including a $4.95 royalty fee per score and a $33 funded loan fee per borrower per score at closing.
- Shares of Fair Isaac Corp. rallied more than 20% on Thursday, while Equifax and TransUnion shares fell double digits and analysts warned of a 10% to 15% earnings impact.
- Will Lansing, FICO CEO, said the move promotes transparency and competition in the $12 trillion U.S. mortgage industry, with scores remaining available through the three nationwide credit bureaus on the same terms.
17 Articles
17 Articles
FICO Launches Direct-to-Lender Credit Reporting Program
Fair Isaac Corp. (FICO) of Bozeman, Montana, launched on Oct. 1 a program that could potentially reshape the way mortgage lenders access customers’ credit scores by sidestepping the country’s three primary credit-reporting agencies. FICO’s mortgage direct licensing program allows “tri-merge resellers”—companies that bundle credit history data from Equifax, TransUnion, and Experian into a merged credit report—to bypass the credit-reporting bureau…
Mortgage lending may never look the same after FICO’s latest shake-up
Investors are celebrating a major shake-up in how FICO scores will be shared with mortgage lenders, as shares of parent company Fair Isaac Corp. have rallied more than 20% on Thursday. That stock rally follows FICO’s announcement on Wednesday of a new pricing model that will allow mortgage lenders to calculate and distribute credit scores directly to borrowers, thereby eliminating the need to rely on the three nationwide credit bureaus for this …
FICO shares surge on plan that would license credit scores directly to mortgage resellers
Fair Isaac Corp.'s shares surged in Thursday morning trading after the US data analytics company said it would license its credit scores directly to mortgage resellers, raising concerns of margin pressure for major credit bureaus.
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