FICO Launches Mortgage Direct License; Bureaus' Shares Drop

FICO launched a Mortgage Direct License Program allowing tri‑merge resellers and mortgage lenders to calculate and receive FICO scores directly, bypassing Equifax, Experian and TransUnion. The company says the move will increase price transparency and reduce costs by eliminating roughly a 100% markup the bureaus have charged, replacing prior per‑score fees (about $10) with a $4.95 royalty. Markets reacted sharply: FICO shares rose (more than 10% in premarket trading) while Equifax, Experian and TransUnion shares fell in the high single digits to about 11%. Analysts estimate the new distribution model could reduce credit bureau earnings by roughly 10–15%. Federal Housing Finance Agency Director Bill Pulte praised the change, while the Consumer Data Industry Association disputed FICO’s cost‑saving claims and warned the program could raise costs for consumers.