FICO Stock Falls Pre-Market After Bill Pulte Declares ‘No More’ to FICO’s Mortgage Scoring Monopoly — Orders Fannie Mae, Freddie Mac to Open Door to VantageScore (UPDATED)

Editor's note: The story has been updated to include a statement from FICO.

Bill Pulte, the Director of the Federal Housing Finance Agency (FHFA), has instructed Fannie Mae (OTC:FNMA)/a> and Freddie Mac (OTC:FMCC)/a> to permit all lenders to utilize the VantageScore credit scoring system.

Pulte took to X on Thursday to highlight the successful initial implementation of VantageScore by Fannie Mae and Freddie Mac, which led to 50 lenders delivering loans.

"Effective immediately, I'm instructing Fannie and Freddie to approve all lenders to use VantageScore," Pulte stated, effectively ending the long-standing monopoly of Fair Isaac Corp. (NYSE:FICO)/a> in the credit scoring sector.

Pulte also accused FICO of raising the per-person cost of obtaining a credit score by 1,800% since 2020.

In a statement to Benzinga, FICO said, "FICO supports Director Pulte’s commitment to foster a competitive environment that is based on performance, trusted analytics, and outcomes for borrowers, lenders, and investors."  It added that FICO says Score 10T is its most predictive credit score, using trended and rental credit data to improve risk assessment and lending decisions. The company expects wider adoption to expand sustainable homeownership and competition while maintaining housing finance stability.

During the Friday pre-market trading session, FICO stock declined 2.14%/p> figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x">div class="wp-block-embed__wrapper">

Since 2020, FICO has increased the price per a person’s credit score by 1,800%. FICO has enjoyed a monopoly. No more. br>br>Fannie and Freddie’s initial rollout of VantageScore has been incredibly successful, with 50 LENDERS DELIVERING LOANS. So, EFFECTIVE IMMEDIATELY, I’m…/p>— Pulte (@pulte) September 4, 2026/blockquote> /div>

Despite endorsing VantageScore, Pulte, in a separate post, criticized its owning credit reporting agencies, Equifax Inc. (NYSE:EFX)/a>, Experian (OTC:EXPGF)/a>, and TransUnion (NYSE:TRU)/a>, accusing them of operating like cartels and overcharging Americans for a significant period.

He vowed to put an end to this practice, warning, "We are seriously considering bi-merge and stronger solutions (SAFER and SOUNDER). We will not allow companies to take advantage of American consumers."/p> figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x">div class="wp-block-embed__wrapper">

Equifax, Experian, and TransUnion have been overcharging Americans for far too long. This will end soon. We are seriously considering bi-merge, and stronger solutions (SAFER and SOUNDER). We will not allow companies to take advantage of American consumers. No more./p>— Pulte (@pulte) September 4, 2026/blockquote> /div>/figure> div class="bz-read-next-block" data-variant="card" data-news-mode="manual" >

strong> Read Also: a href="https://www.benzinga.com/news/politics/26/07/60755473/elizabeth-warren-offers-a-theory-on-why-trump-refused-to-sign-bipartisan-housing-bill-no-gold-statues-no-gold-bars" target="_blank" rel="noopener"> Elizabeth Warren Offers a 'Theory' on Why Trump Refused To Sign Bipartisan Housing Bill: 'No Gold Statues…No Gold Bars'/a> /strong> /p>

Housing Market Faces Fresh Pressure

This directive comes in the wake of an investigation launched by Sen. Josh Hawley (R-MO) into FICO's pricing of credit scoring in the mortgage market back in March. Hawley argued that the rising cost of credit scores was placing an undue burden on homebuyers in an already inflated market.

The U.S. housing market has been experiencing a significant shift, with sellers outnumbering buyers by 51.3% in July 2026. This has led to a record-low number of active homebuyers, further exacerbating the pressure on home prices.

Meanwhile, high mortgage rates are keeping Americans from moving, with the probability of changing homes falling to a record-low 13.5%. Nearly two-thirds of mortgages carry rates below 5%, making homeowners reluctant to trade cheap loans for rates near 7%. The housing freeze is weighing on Home Depot Inc. (NYSE:HD)/a>, which sees no clear recovery yet.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors./p> div class="bz-read-next-block" data-variant="card" data-news-mode="manual" >

strong> Read Also: a href="https://www.benzinga.com/etfs/sector-etfs/26/08/61446560/buyers-are-backing-away-and-homebuilder-etfs-are-next-in-line" target="_blank" rel="noopener"> Buyers Are Backing Away, and Homebuilder ETFs Are Next in Line/a> /strong> /p>

Photo courtesy: USA Today via Reuters Connect