FICO slumps after Fannie Mae and Freddie Mac move to single pricing framework
FICO•Fair Isaac shares fell 22.2% to $653 in premarket trading after FHFA Director Bill Pulte said Fannie Mae and Freddie Mac would move to a single pricing grid, adding VantageScore to the existing FICO pricing framework.
1. Pricing framework shift
Pulte said Fannie Mae and Freddie Mac will move to a single pricing grid, with VantageScore joining the existing FICO pricing framework. VantageScore is a rival credit-scoring model jointly developed by Equifax, Experian and TransUnion.
2. Shares fall sharply
Fair Isaac shares fell 22.2% to $653 in premarket trading and were set to reach their lowest level since February 2023 at the market open. The stock was down 50.3% year to date as of the previous close. Earlier this month, Pulte reiterated his claim that FICO was unduly keeping consumer costs high.
