09/30/2026
For years, FICO’s monopoly on credit scoring has caused credit fees to skyrocket.
The three major credit bureaus, TransUnion, Equifax, and Experian, provide the credit data, while companies such as FICO provide the scoring models used to evaluate that information. As costs have increased, those expenses ultimately get passed along to consumers.
For years, each party has raised their prices; the credit bureaus blame FICO, FICO blames the bureaus, all while the consumer pays for it.
Now, VantageScore, a competing credit scoring model, has been approved for use with Fannie Mae and Freddie Mac.
While there is no effective date yet, this is another step in the right direction toward containing lending costs.
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Key TakeawaysFICO shares fell about 27% after FHFA Director Bill Pulte said Fannie Mae and Freddie Mac will merge their two mortgage pricing grids into one that includes VantageScore next to FICO Classic. Putting VantageScore on the same pricing grid removes the main cost reason for lenders to stay....
