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Fair Isaac Corp.’s (FICO) decision to let resellers calculate and distribute its scores directly to lenders drew a mixed response from the mortgage industry — viewed by some as a step toward more competition, but by others as a potential driver of higher credit score costs in the short term.
On Wednesday, FICO unveiled the program, which bypasses the three nationwide credit bureaus (Equifax, TransUnion and Experian) by distributing scores directly to tri-merge resellers.
The move comes amid heightened competition with VantageScore, owned by the three bureaus, whose VantageScore 4.0 will soon be eligible for use in loans purchased by Fannie Mae and Freddie Mac as an alternative to the Classic FICO score.
Federal Housing Finance Agency (FHFA) Director Bill Pulte posted Thursday morning on X a comment saying he “genuinely appreciates FICO taking constructive criticism” after conversations with CEO Will Lansing.
“While their decision is a first step, it is appreciated. I encourage the credit bureaus to also take similar creative and constructive actions to make our markets safer, stronger and more competitive,” Pulte wrote. “To that end, VantageScore should also look at ensuring they are competitive, in every way, including but not limited to costs.”
VantageScore declined to comment.
In a statement, the Consumer Data Industry Association (CDIA) said the program is positioned as a cost-cutting measure, which is “simply not true.”
“With this announcement, FICO has at least doubled its publicly disclosed prices year-over-year while introducing operational costs and risks to resellers and lenders. FICO’s pricing proposal will also inevitably cause lenders to pass on significantly higher costs to consumers,” the CDIA said in a statement.
The two models
FICO will offer lenders two pricing options. Under the “performance model,” lenders pay a $4.95 royalty fee per score plus a $33 fee per borrower per score on funded loans — a structure suited for lenders with high fallout rates. The traditional per score only pricing model maintains a $10 per score fee into the tri-merge resellers, which FICO states is the average price previously charged by credit bureaus.
Lenders may also continue working directly with the credit bureaus if they choose. Some sources said it is not yet clear what factors will guide lenders’ choice for the resellers or the bureaus in score calculation while others mentioned only pricing. The rationale behind the change, they added, is that more players in the chain will hold each other accountable for pricing.
Mortgage executives said the shift effectively redirects some revenue away from the bureaus by making resellers direct clients of FICO. However, because the bureaus still control essential credit data — including tradeline history — sources warned they may raise fees to offset the lost revenue.
Currently, FICO charges the bureaus $4.95 per score, which the bureaus often double before passing the cost along to resellers, the sources added.
Shelley Leonard, president of Xactus, said resellers remain heavily dependent on the credit bureaus for access to accurate consumer-level credit data, which will not change. Getting borrower data requires scale and is challenging to replicate, so the move does not disintermediate the bureaus in any way.
Today, credit bureaus take consumer data, run it through their technology integrations with FICO’s algorithmic score models, and generate a consolidated file of credit data. Resellers then compile that into a tri-merge credit report. Under the new program, the inputs and outputs remain the same — only the score calculation can shift to resellers.
Leonard said resellers are still waiting to hear what the bureaus’ pricing will be in 2026.
In a statement, a spokesperson for TransUnion wrote that it’s disappointed to see FICO more than doubling its pricing while introducing a $99 penalty fee on each homebuyer ($198 for each couple co-purchasing a home). It added that the credit bureaus provide the vital data upon which FICO scores are calculated. “Without credit data, there can be no FICO score.”
“At a time when hopeful homebuyers are looking for certainty, FICO’s unilateral price increases create unnecessary complication in the mortgage process and additional cost burdens on consumers,” the spokesperson added. “Resellers and other industry participants would also bear the brunt of these changes which serve only to increase FICO’s revenues. Implementation of any such change is neither certain nor likely to occur near-term.”
Market reactions
Mortgage Bankers Association (MBA) president and CEO Bob Broeksmit said the new program enhances transparency and provides more options to lenders. However, “it remains to be seen if this will result in materially lower costs.”
“MBA will monitor the implementation of this new program while continuing to call for reforms that support a better credit reporting system that promotes more competition, efficiency, and lower costs for consumers,” Broeksmit said in a statement.
The Community Home Lenders of America (CHLA) said it is “concerned that in a head-to- head matchup, Fair Isaac might ultimately squeeze out VantageScore and the Credit Bureau model altogether.”
“We will closely monitor developments related to yesterday’s announcement, to ensure promised savings are real, passed through to consumers, and consistent with our long-standing calls for fair, competitive credit-score markets,” the CHLA said in a statement.
FICO said it is already working with resellers to roll out the new options. Some resellers operate their own technology platforms that would be integrated with FICO, while others rely on third-party vendors.
Leonard of Xactus said the company already has integrations in place with the bureaus to receive credit data and will use the same connectivity for FICO’s integration. While Xactus has not committed to a delivery date, its goal is to be ready by January 1, when FICO says the program takes effect.
FICO scores are used by 90% of the top U.S. lenders. The company said the changes align with “calls from policymakers and industry leaders to modernize credit infrastructure and promote affordability, liquidity and access in the $12 trillion U.S. mortgage industry.”
Update: This story was updated to add comments from the Consumer Data Industry Association and TransUnion.
