Finance
FICO Crashes As Trump Housing Chief Pulte Cracks Mortgage
Federal Housing Finance Agency Director Bill Pulte announced that Fannie Mae and Freddie Mac have been instructed to immediately approve all lenders to use
Key takeaways
- Fannie Mae and Freddie Mac have been instructed to approve all lenders to use VantageScore as an eligible credit scoring system.
- FHFA is seriously considering a bi-merge credit pull requirement for conforming loans.
- Equifax, Experian, and TransUnion have been overcharging Americans for far too long.
- Fair Isaac shares crashed as much as 21% in intraday trading.
- A shift to bi-merge credit reports could negatively impact up to one-third of mortgage inquiries.
Federal Housing Finance Agency Director Bill Pulte announced that Fannie Mae and Freddie Mac have been instructed to immediately approve all lenders to use VantageScore, a competing credit-scoring model. Pulte also stated he is seriously considering a bi-merge credit pull requirement for conforming loans to combat overcharging by Equifax, Experian, and TransUnion. Following the announcements, Fair Isaac (FICO) shares crashed as much as 21%, while Equifax and TransUnion each tumbled up to 11%.
The directive challenges FICO's long-standing dominance and aims to lower costs for homebuyers.
In their words
“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.”
By the numbers
- -21%
- Fair Isaac intraday stock decline
- -11%
- Equifax and TransUnion stock decline
- 21%
- Mortgage share of Equifax revenues in 2025
- 13%
- Mortgage share of TransUnion revenues
- 4%
- Mortgage share of Experian revenues
How it unfolded
- Mortgages represented 21% of Equifax's revenues.
- VantageScore reached 34% market share at Rocket.
- FHFA Director Bill Pulte posted warnings on X.
- Credit bureau and FICO shares tumbled on Friday morning.
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Common questions
- What happened with Fair Isaac?
- Fannie Mae and Freddie Mac have been instructed to approve all lenders to use VantageScore as an eligible credit scoring system.
- Where can I read the original report?
- Read the full report at Zerohedge.
