Fair Isaac Drops as Pulte Lets Fannie, Freddie Use VantageScore

Shares in Fair Isaac Corp., known colloquially as FICO, declined after federal regulators said government-sponsored mortgage entities Fannie Mae and Freddie Mac will be able to use a second firm when determining borrowers’ creditworthiness.

FICO shares slid 8.9%, the most since May, to $1,703.17, the lowest in six weeks.

Federal Housing Finance Agency Director Bill Pulte said in a post on X that Fannieand Freddiewill now allow lenders to accept the Vantage 4.0 credit model to “increase competition” in the credit score ecosystem, giving a FICO competitor access to one of its biggest markets.

Pulte said the ...