Fair Isaac Holds Pricing in Bid to Encourage Lenders to not Drop FICO Usage

Dow Jones10-26 22:56

1056 ET - Fair Isaac held its price of $10 for mortgage lenders to use its FICO score, a move Wells Fargo says could encourage lenders not to drop usage. "We previously expected FICO to raise prices meaningfully in 2027," analysts Jason Haas and Keegan Antico say in a research note. FICO's pricing compares with the roughly $4 it costs for mortgage lenders to pull a credit score using competitor VantageScore, according to the credit bureau TransUnion. Most banks will likely remain slow in their adoption of VS given greater regulatory scrutiny and wanting to adequately test VS delinquency performance, the analysts say. That should alleviate some concern among investors that FICO will lose market share, even though FICO's decision could weigh on EPS. Wells Fargo downgrades FICO to equal weight, and lowers its price target to $735 from $800. FICO sinks 7.8%.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment