"Fair Isaac Corp. (FICO) has launched a program allowing tri-merge resellers to calculate and distribute its scores directly to mortgage companies, effectively bypassing the three nationwide credit bureaus: Equifax, TransUnion and Experian. The move comes amid intensified competition with VantageScore, owned by the three bureaus, following the Federal Housing Finance Agency's (FHFA) decision to let Fannie Mae and Freddie Mac purchase loans underwritten with VantageScore 4.0 as an alternative to the Classic FICO score."
"This change eliminates unnecessary mark-ups on the FICO Score and puts pricing model choice in the hands of those who use FICO Scores to drive mortgage decisions. Under the new program, FICO will charge in a performance model a $4.95 royalty fee per score. Additionally, a $33 funded loan fee per borrower per score will apply when the loan closes, replacing previous re-issue charges, as FICO recognizes the value its scores provide to insurers, investors and rating agencies."
"For lenders sticking with the traditional per score only model, the fee remains $10 per score through tri-merge resellers, consistent with prior pricing. FICO scores will remain available through the three nationwide credit bureaus on the same terms, though the company noted it does not control any pricing mark-ups the bureaus may impose in their channels. The company is still working with tri-merge resellers to implement the new direct license program."
FICO launched a program allowing tri-merge resellers to calculate and distribute FICO Scores directly to mortgage companies, bypassing Equifax, TransUnion and Experian. The move responds to competition from VantageScore after FHFA allowed Fannie Mae and Freddie Mac to accept VantageScore 4.0 alongside Classic FICO. FICO will offer a performance pricing option with a $4.95 royalty per score and a $33 funded-loan fee per borrower per score when loans close. The traditional per-score model remains $10 through tri-merge resellers. FICO Scores will still be available via the three bureaus, though those channels may include additional mark-ups. The company says the changes aim to modernize credit infrastructure and support affordability, liquidity and access in the mortgage market.
Read at www.housingwire.com
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