"The new program "puts pricing model choice in the hands of those who use FICO Scores to drive mortgage decisions," Will Lansing, CEO of Bozeman, Montana-based FICO said in a statement."
"Beginning in May, Fair Isaac came under fire by Pulte, who said he was "extremely disappointed" about FICO's announcement of price hike for credit scores, then announced in July that mortgage lenders could use a rival credit score, the VantageScore, to evaluate potential borrowers, and even called FICO a "monopoly.""
""I think we have responded to the call, and so I think there will be a lot of happiness around the idea that the score prices are flat-to-down for next year and we have competing channels of distribution," Lansing said on CNBC."
FICO introduced a new pricing model that allows mortgage lenders to calculate and distribute FICO scores directly to borrowers, bypassing the three nationwide credit bureaus. Lenders can choose a direct license option that can save up to 50% on per-score fees while the legacy pricing model remains available. The FICO score is used by 90% of top U.S. lenders. FHFA director Bill Pulte had criticized earlier FICO price changes, promoted VantageScore as an alternative, and pressured for lower prices. Fair Isaac's stock jumped more than 20% after the announcement and FICO said the change should lower mortgage costs for consumers.
Read at Fast Company
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