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Fair Isaac Corporation
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- 1Fair Isaac shares sink 20% as Fannie and Freddie back rival credit score▼Fair Isaac stock plunges 20% after Fannie and Freddie open door to FICO credit score rival
Fair Isaac Corporation, maker of the FICO credit score, saw its stock plunge roughly 20% after mortgage finance giants Fannie Mae and Freddie Mac announced they will allow lenders to use a competing credit score. The move threatens FICO's long-standing dominance in the mortgage market, where its scores are the standard for loan underwriting, raising fears of lost revenue and pricing pressure.
- 2Fair Isaac Shares Fall as Regulators End FICO Mortgage Score Monopoly▼Fair Isaac Tanks After Government Snaps FICO Score Monopoly For Mortgage Pricing
Fair Isaac Corporation, the company behind the FICO credit score, saw its shares tumble after the US government moved to break the company's long-standing monopoly on credit scoring in mortgage pricing. The action opens mortgage lending to competing credit score providers, threatening a core revenue stream for Fair Isaac. Investors reacted sharply, sending the stock down as analysts weighed the impact on the company's dominant position in the housing finance market.