"An 88% operating margin and a compound annual growth rate of 100% in per-score pricing over five years are not hallmarks of a competitive market."
"The wholesale price of FICO's mortgage credit score rose from $0.60 to $10 per score over the past five years, with a planned increase to $10 in 2026."
"These costs are ultimately borne by borrowers, especially damaging to first-time homebuyers, who often pay for multiple credit checks across several loan applications."
FICO defends its fees, claiming they are a small part of mortgage closing costs. However, scrutiny arises regarding whether these fees reflect competitive market forces or monopoly pricing. FICO's operating margin and significant price increases over five years suggest a lack of competition. A new pricing structure was introduced, increasing costs for lenders and potentially raising industry-wide mortgage credit score costs significantly. These increased costs disproportionately affect first-time homebuyers, who face multiple credit checks during the loan application process.
Read at www.housingwire.com
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