Fair Isaac Plunges 22% After FHFA Moves to Open Mortgage Pricing to VantageScore

Shares of Fair Isaac Corp. (FICO) tumbled 21.97% on Tuesday morning after the Federal Housing Finance Agency announced structural changes to mortgage pricing that threaten the company's credit scoring monopoly. The stock traded at $656.69, down $184.78 from its previous close of $840.89 on the New York Stock Exchange, near the low end of its 52-week range of $656.00 to $1,998.01. FHFA Director Bill Pulte said Fannie Mae and Freddie Mac will consolidate their separate pricing matrices into a single unified system. The new framework will incorporate VantageScore, a model developed by the three major credit bureaus, alongside the traditional FICO Classic score. The shift ends FICO's exclusive role in setting mortgage pricing for the government-sponsored enterprises, potentially eroding its dominant market position.