FICO shakes up mortgage credit scoring: lenders can buy FICO scores directly (bypassing bureaus). Prices drop, transparency rises; bureau stocks slump while $FICO jumps.

Quick take

FICO launched a direct-to-reseller licensing program for mortgage scores, undercutting the traditional pass-through model used by Equifax and TransUnion. New pricing options (flat ~$10 per score or performance-based, versus ~$4.95 wholesale plus bureau markups) aim to cut lender costs by up to ~50%. Shares of $EFX and $TRU fell; $FICO rallied.

Winners

Category: Credit Scoring Platforms

Reason: Captures economics previously taken by bureaus; clearer pricing and direct relationships with mortgage resellers.

Names: $FICO (Fair Isaac), $MLNK (MeridianLink – LOS/credit data integrator likely to benefit from direct  ...