FICO's $0.42 Billion Surge Ranks 278th as FHFA Challenges Credit Scoring Monopoly

On July 29, 2025, Fair (FICO) traded with a volume of $0.42 billion, a 45.99% increase from the previous day, ranking 278th in trading activity. The stock closed down 0.57% for the session, reflecting heightened market sensitivity to regulatory and competitive pressures.

Fair Isaac Corp. intensified lobbying efforts in Q2 2025, spending $460,000—a record for the company and double its Q1 expenditure. This surge coincided with criticism from Federal Housing Finance Agency (FHFA) head Bill Pulte, who labeled FICO a “monopoly” and pushed for antitrust scrutiny. Pulte also introduced a policy allowing mortgage lenders to use VantageScore 4.0 alongside FICO scores for loans backed by Fannie Mae and Freddie Mac, signaling a shift toward competitive credit scoring models.

VantageScore, developed by Experian, Equifax, and TransUnion, has ramped its own lobbying, spending $160,000 in Q2 2025. FICO defended its dominance by arguing that VantageScore’s approach risks diluting credit standards, citing lessons from the 2008 financial crisis. The company claims its newer scoring model, which incorporates alternative data like rent payments, outperforms VantageScore, though the FHFA has yet to adopt it.

FICO CEO William Lansing downplayed regulatory challenges as a “hiccup,” emphasizing the company’s confidence in its market-leading model. However, the FHFA’s policy shift and growing lobbying expenditures by competitors highlight escalating tensions in the credit scoring sector. The stock’s performance remains closely tied to regulatory outcomes and competitive dynamics in the market.

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