FICO Shares Fall 1.31% with $560M Volume Ranking 200th as VantageScore Challenges Dominance

Fair Isaac (FICO) fell 1.31% on August 5, 2025, with a trading volume of $560 million, ranking 200th in the market. The decline follows the Federal Housing Finance Agency’s (FHFA) decision to permit mortgage lenders to use alternative credit scores, such as VantageScore, challenging FICO’s long-standing dominance in the U.S. mortgage lending sector. FICO’s algorithm, which underpins traditional credit scoring, has historically been the sole metric used by Fannie Mae and Freddie Mac for mortgage applications. The policy shift has raised concerns about FICO’s market share, as VantageScore—a system co-developed by FICO’s competitors—now offers lenders an alternative that incorporates rental payment history, a feature absent in FICO’s model.

The FHFA’s move has intensified scrutiny over FICO’s pricing power. The company’s credit report fees have surged from $0.60 in 2018 to $4.95 today, contributing to rising costs for homebuyers. Critics argue that FICO’s monopoly has led to excessive fees, prompting the Consumer Financial Protection Bureau to investigate “junk fees” in 2024. While some analysts suggest VantageScore’s adoption may not immediately displace FICO, the long-term implications for FICO’s revenue remain uncertain. TD Cowen’s Jaret Seiberg noted that VantageScore’s integration could take time, but the shift signals a potential structural change in the credit scoring landscape.

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