FICO Shares Plunge 26% as FHFA Ends Mortgage Market Monopoly

Key Facts

1Fair Isaac Corp (FICO) shares plunged 26.66%, marking its worst single-day decline since 2022.

2The FHFA announced a new policy allowing lenders to use the less expensive VantageScore instead of FICO scores.

3VantageScore costs approximately $0.99 per score compared to FICO's cost of about $10.00.

Fair Isaac Corp (FICO) shares plunged 26.66%, marking the company's worst single-day decline since 2022. The sell-off followed an announcement by the Federal Housing Finance Agency (FHFA) to end FICO's monopoly by allowing lenders to use the VantageScore system for government-backed mortgages, according to Financial Modeling Prep.

The regulatory shift introduces a significant cost advantage for competitors, as VantageScore costs approximately $0.99 per score compared to FICO's $10.00 fee. FICO closed at $840.89 on September 28, 2026, prior to the market reaction that saw the stock hit new lows; meanwhile, RBC Capital maintained an "Outperform" rating on the stock despite the loss of its long-standing market advantage.