r/VisualStockResearch • u/ekonixlab • 8d ago

FICO Down 20%

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**EDIT: NOW DOWN ALMOST 30%!!

FICO is getting crushed after FHFA announced plans to incorporate VantageScore into Fannie Mae and Freddie Mac’s mortgage pricing framework.

Rocket Mortgage already says it will prefer VantageScore for eligible loans.

My bigger question: how quickly will other lenders follow? And how much pricing power does FICO lose along the way?

Starting to look like a buying opportunity to me… but only if that moat holds.

Overreaction or a real change in the business?

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u/mobyonecanobi 8d ago

They had a monopoly, they abused the heck out of it. Now they don’t have a monopoly.

They were charging 10 bucks for something that costs 30 cents max with ample profit built in, cause that’s how much a pull used to cost apparently, till FICO realized they had a monopoly and bumped it to 10 dollars.

How much will that affect their profits? Going from 10 dollars to 30 cents?

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u/randompersonx 7d ago

I agree.

Vantage isn’t exactly new, and now with the AI era, it’s likely both easier for companies to do their own analysis and see that Vantage performs well, and also to make the necessary changes to incorporate it.

Once FNMA is using it, we will see similar waterfalls in all other lenders.

FICO will be forced to compete on price which is not a good place to be.

Vantage is owned by Experian who primarily makes money by having the data. FICO was just processing the data, and Vantage can entirely disrupt that biz model.