FICO Monopoly Broken
FICO just lost its exclusive grip on the mortgage market. Here is how a single government order shook up the credit scoring industry.
What the video says
One government order just wiped out 21% of FICO creator Fair Isaac. Federal Housing Finance Agency Director Bill Pulte accused credit bureaus of overcharging American consumers.
He warned that the government is seriously considering a bi-merge credit report system to cut costs. To break FICO's monopoly, Pulte ordered Fannie Mae and Freddie Mac to approve competitor VantageScore for all lenders.
