$FICO is down 20% today due to the regulator!

· 9h

$FICO is down 20% today due to the regulator!

The U.S. mortgage regulator FHFA announced that Fannie Mae and Freddie Mac will implement a single pricing table, where VantageScore stands alongside FICO. A borrower with a VantageScore of 780+ will now qualify for the best terms, just as with FICO, so the 20-point disadvantage disappears.

VantageScore costs about $0.99 per score, FICO around $10. With the same rules in place, banks have no reason to pay 10× more.

It looks like the credit score monopoly has its first serious crack.

A community member's personal view, not investment advice. Community Guidelines

Pavel Krejčík @pavelkrejcik2 3h

If it costs 10x more, what do you think they would want...

Vojtěch Šplíchal @vojtechsplichal 3h

I agree!

patrik white @patrikwhite 5h

That's a decent flush. The situation presents a high risk of significant weakening of future margins, which could cause further sell-offs.

Kryštof Jáně @krystofjane 2h

Exactly, it's a snowball right now. And if I had to guess, the decline won't stop in the coming days.

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