the end of FICO's hold on mortgage credit scores
Fannie Mae and Freddie Mac will now price mortgages the same way whether the lender uses a FICO score or the cheaper VantageScore, and the largest US mortgage lender has already switched. FICO loses its hold on its most profitable business, which weighs on it more than on other technology companies.
What changed
We lowered our expected return for Fair Isaac against the rest of the technology sector.
| Symbol | Without it | With it | Change |
|---|---|---|---|
| Fair IsaacFICO | 6.21% | 5.36% | −0.85pp |
Each stock as it stands now, and without this story. Figures are annual expected returns (arithmetic means). They are not a forecast or a promise.