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What'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.
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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.
·New York, United States
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Shares of credit bureaus fall as FICO rolls out direct mortgage score licensing
(Reuters) -Shares of major credit reporting companies tumbled on Thursday after U.S. data analytics company Fair Isaac Corp unveiled a program that allows mortgage resellers to calculate and distribute its creditworthiness score directly to consumers. This could pressure earnings and margins of three main U.S. credit bureaus Experian, Equifax and TransUnion, analysts said as they have been providing credit data and FICO scores to produce reports…
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Total News Sources12
Leaning Left2Leaning Right1Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 33%
C 50%
R 17%
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