Equifax Expands Mortgage Credit Offerings to Promote Competition, Lower Costs

Equifax is expanding its mortgage credit offerings to promote credit scoring competition. The company will offer VantageScore 4.0 mortgage credit scores at a lower price point of $4.50, more than 50% below FICO's 2026 price. Additionally, Equifax will provide free VantageScore 4.0 credit scores to its mortgage, automotive, card, and consumer finance customers who purchase FICO scores. The move aims to support consumers and the mortgage industry by increasing competition and reducing costs.

Equifax Inc. (NYSE: EFX) has announced a significant expansion of its mortgage credit offerings aimed at promoting competition in the credit scoring market and supporting consumers. The company will offer VantageScore 4.0 mortgage credit scores at a lower price point of $4.50, which is more than 50% below FICO's 2026 price of $10. Additionally, Equifax will provide free VantageScore 4.0 credit scores to its mortgage, automotive, card, and consumer finance customers who purchase FICO scores through the end of 2026 Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[1].

The move by Equifax is intended to support consumers and the mortgage industry by increasing competition and reducing costs. VantageScore 4.0 uses trended data and alternative data, including rental, utilities, and telecommunications payment histories, to enhance the assessment of creditworthiness. This approach provides a more comprehensive view of a consumer's financial profile, potentially enabling greater access to credit for millions more Americans Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[1].

Equifax's Chief Executive Officer, Mark W. Begor, stated, "Equifax plays an essential role in the financial lives of consumers and the mortgage industry, and we take that responsibility very seriously. We are committed to holding the $4.50 score pricing for two years to give lenders the confidence they need to convert to the higher-performing VantageScore" Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[1].

The company will also deliver income and employment indicators alongside its mortgage credit reports at no cost. This additional data, which includes The Work Number® Report Indicator, aims to enhance the value of Equifax's solution and provide lenders with more insights into a borrower's financial health Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[1].

The expansion of Equifax's mortgage credit offerings comes amidst a challenging mortgage and housing market. High interest rates, rapidly increasing home values, and limited inventory have posed significant challenges for American homebuyers. By providing a more comprehensive and cost-effective credit scoring solution, Equifax seeks to support consumers and lenders during this challenging period Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[1].

Equifax's move to undercut FICO on mortgage score pricing and bundle alternative data is part of a broader strategy to accelerate lender conversion to VantageScore. The company's goal is to increase the adoption of VantageScore 4.0 and expand credit access for more U.S. consumers Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[2].

Key dependencies and risks include lender willingness to switch scoring models and the actual operational integration of alternative data into underwriting systems. While the pricing alone may not force rapid conversion, Equifax's commitment to providing free VantageScore 4.0 scores through 2026 and retaining the $4.50 pricing through 2027 aims to incentivize lenders to adopt the new scoring model Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[2].

Equifax's efforts to expand mortgage credit offerings and promote competition in the credit scoring market are likely to have a significant impact on the mortgage industry. By providing more comprehensive and cost-effective credit scoring solutions, the company aims to support consumers and lenders during a challenging market environment Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[1].

References
Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[1] https://www.prnewswire.com/news-releases/equifax-expands-mortgage-credit-offerings-to-promote-credit-scoring-competition-supporting-consumers-and-the-mortgage-industry-302577530.html
Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[2] https://www.stocktitan.net/news/EFX/equifax-expands-mortgage-credit-offerings-to-promote-credit-scoring-uaulx1godr4e.html