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Research Alert: Fico Loses Its Grip - Fhfa Opens Door To Rivals

BY MT Newswires | AGENCY | 04/22/26 08:40 PM EDT

08:40 PM EDT, 04/22/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

FICO's stranglehold on mortgage credit scoring officially ended as FHFA Director Bill Pulte announced that "effective immediately," Fannie Mae and Freddie Mac would accept VantageScore, FICO's main competitor, credit models. HUD Secretary Scott Turner said FHA would follow within months. FICO shares plunged 10%+ on the news. Until now, GSEs relied almost exclusively on older FICO models, giving FICO monopolistic control over mortgage financing access. This dominance recently prompted Senator Josh Hawley to investigate FICO's pricing practices. VantageScore costs $0.99 versus FICO's $4.95-$10 plus fees, and uses alternative data like rent payments to score borrowers. We believe this announcement will heavily expand mortgage access, with millions previously excluded by traditional scoring and high costs. This announcement poses a massive headwind for FICO, breaking its monopoly and introducing intense pricing competition unseen in decades. We're watching FICO's April 28 earnings call for management's response.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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