Topline
Fair Isaac’s stock fell around 27% on Tuesday after Federal Housing Finance Agency Director Bill Pulte said Fannie Mae and Freddie Mac will start using a single pricing grid covering both FICO and rival VantageScore, a move that could break FICO’s long-standing hold on the mortgage market.
GERMANY – 2026/06/22: In this photo illustration, the logo of US company Fair Isaac Corporation (FICO) is displayed on a smartphone in front of abstract background on computer screen. (Photo Illustration by Timon Schneider/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Key Facts
FICO shares were down 27% as of 1 p.m. EDT on Tuesday after Pulte announced on Monday night that Fannie Mae and Freddie Mac will consolidate their separate pricing grids into one that includes both VantageScore and FICO Classic.
Pulte, who announced the single pricing grid on X, did not say when the grid will go into effect.
VantageScore 4.0 is already available to all approved Fannie Mae and Freddie Mac lenders, after FHFA on Sept. 9 announced that lenders no longer need to get permission from Fannie and Freddie before using VantageScore 4.0 on eligible mortgages.
Rocket Mortgage on Monday night thanked Pulte for encouraging multiple credit score models and announced that after four months of testing, it found VantageScore 4.0 “helped more clients qualify and move forward in the mortgage process, while also reducing credit scoring costs,” so starting in the fourth quarter it will become its preferred credit-scoring model for eligible mortgages.
TransUnion, which jointly owns VantageScore with Equifax and Experian, announced on Tuesday that it will charge just 99 cents for each VantageScore mortgage score through December 2028, in an effort to support “greater competition and score choice in the mortgage market.”
The announcement caused other credit-scoring sector stocks to fall, with TransUnion down around 4.5% as of 1 p.m. EDT, Equifax down over 3.5% and Experian down over 2%.
KEY BACKGROUND
FICO has long been the dominant credit-score provider for U.S. mortgage lending, with Fannie Mae and Freddie Mac historically relying on its scores in their mortgage underwriting and pricing systems. With VantageScore 4.0 now approved for all lenders, they now have a substantial alternative to FICO. VantageScore 4.0 already accounted for around 9% of mortgages scrutinized by Fannie Mae and Freddie Mac from May through August.
TANGENT
Pulte, Trump’s pick who was sworn in as the director of the Federal Housing Finance Agency in March 2025, oversees Fannie Mae, Freddie Mac and the Federal Home Loan Banks. He has prioritized expanding competition in credit scoring along with reducing mortgage costs, broader access to alternative credit data and changes to credit-report requirements.
FURTHER READING
FICO Lost 17% In A Day Because Mortgages Finally Have A Second Credit Score (Forbes)
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