All articles tagged with #vantagescore
Bill Pulte, head of the FHFA, urges Fannie Mae and Freddie Mac to approve VantageScore, a move that threatens FICO’s dominance and could usher in a new credit-score model. The push coincides with criticisms that the major credit bureaus (Equifax, Experian, TransUnion) are overcharging consumers, prompting stock declines in FICO and the bureaus as markets weigh potential shifts in how creditworthiness is measured.
The stock of FICO, the company behind the widely used credit score, plummeted over 17% after the Federal Housing Finance Agency announced that lenders can now use VantageScore, a competitor, to assess creditworthiness for government-backed mortgages, potentially increasing competition and reducing costs in the mortgage industry.
Fair Isaac's stock drops 6% after Fannie Mae and Freddie Mac permit lenders to use the VantageScore 4.0 credit scoring model, increasing competition in the mortgage market and impacting FICO's market position, while credit bureaus Equifax, Experian, and TransUnion see their stocks rise.