Fair Isaac (FICO) Stock Craters 18% as Its Mortgage Monopoly Ends
TLDR
- FICO stock dropped around 15-18% after the FHFA approved VantageScore 4.0 for all Fannie Mae and Freddie Mac mortgage lenders
- The move ends FICO’s effective monopoly on mortgage credit scoring
- VantageScore 4.0 had already captured over 9% of GSE mortgage securitizations since a limited rollout began May 1, 2026
- Analysts maintain a “Moderate Buy” consensus with an average price target of $1,553.69, though several have cut their targets
- FICO is now down 43.2% year-to-date, trading at around $927-$934 per share
Fair Isaac Corporation took a brutal hit on September 4, 2026, with FICO stock falling between 15% and 18% after a federal regulator opened the mortgage credit scoring market to direct competition.
The Federal Housing Finance Agency approved VantageScore 4.0 for use by all lenders originating Fannie Mae and Freddie Mac mortgage loans. FHFA Director Bill Pulte directed both government-sponsored enterprises to immediately allow all mortgage lenders to choose between Classic FICO and VantageScore 4.0.
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