FICO shares dropped after Senator Josh Hawley launched a Senate investigation into massive increases in mortgage credit score prices—from $0.60 to $10—hurting first-time homebuyers.
FICO shares dropped nearly 20% in two days due to competitor pricing moves on VantageScore 4.0, but Jefferies calls it a market overreaction and sees strong upside with a $2,200 price target and Buy rating.
Equifax is cutting the price of its VantageScore 4.0 for mortgages by over 50% compared to FICO's new price, driving competition and using alternative data to help millions more Americans get scored.
FICO sells mortgage scores directly to lenders, cutting out credit bureaus. This seeks price transparency & savings but hurt bureau stock.
