FICO Closes at $708.07 as Competition for Mortgage Scores Intensifies
Key Facts
Fair Isaac shares closed at $708.07 on October 26, compared with $815.31 on October 23, according to EL7 data. The decline came as the company faced growing competition in the U.S. mortgage scoring market. On October 23, FICO announced it would hold the wholesale price for its Preferred program at $10 for lenders enrolled in it. The following day, Wells Fargo cut its rating on the stock from "overweight" to "neutral" and lowered its price target from $800 to $735. The data provided do not record a closing price for the stock on October 27, and TransUnion’s announcement extending VantageScore pricing preceded the stock’s moves by about four weeks.
FICO’s $10 price covers a package of Classic FICO and FICO Score 10T, available through participating resellers to lenders and brokers enrolled in the program. The company said the price applies to Preferred Program participants; its announcement did not describe it as a uniform price for all lenders or all model uses. The company’s chief executive said holding the price while including both models gives lenders tools to assess risk. He said: "By holding our price at $10 for lenders in the Preferred program and including both Classic FICO and FICO Score 10T." The announcement matters because it sets the terms of FICO’s offering for enrolled institutions at a time when lenders have a wider range of models available.
By contrast, TransUnion said it would continue making VantageScore 4.0 available to mortgage clients who purchase a FICO score at no additional cost. The company announced an extension of VantageScore 4.0 mortgage pricing through the end of 2028, saying the move supports competition and price stability. The announcement was published about four weeks before the date of this story, so it was not a new announcement on October 27. TransUnion also said adoption of the model reached more than 1,100 mortgage lenders between January and September 2026. That included 9 of its 15 largest mortgage clients, according to the company.
The expanding competition coincided with regulatory changes that broadened lenders’ options. On September 9, 2026, Federal Housing Finance Agency entities made VantageScore 4.0 available to all approved lenders and removed the requirement for prior written approval. The rules allow lenders to choose between Classic FICO and VantageScore 4.0 for loans sold to Fannie Mae and Freddie Mac, while Classic FICO remains approved. On September 30, the agency announced that it would align upfront fees between the two models for loans submitted using either one. FHFA said introducing newer models could improve risk management because they are better able to predict default risk.
As alternatives expand, the U.S. Department of Housing and Urban Development said allowing VantageScore 4.0 and FICO Score 10T alongside Classic FICO could spur long-delayed competition. TransUnion also said the Federal Housing Administration plans to accept mortgage endorsements tied to VantageScore 4.0 starting January 1, 2027. The department’s guidance sets the start of using VantageScore 4.0 and FICO Score 10T alongside Classic FICO in assigned Title II loan cases on the same date. This broadens the set of models that can be included in eligible mortgage files, while lenders retain a choice among models approved under current rules. The change puts pricing terms and model availability at the center of competition between FICO and VantageScore.
In trading, TransUnion shares closed at $79.62 on October 26, compared with $81.48 on October 23, according to EL7 data. In the October 26 session, Wells Fargo cut its rating on FICO after the company announced 2027 pricing, which the bank said came in below analysts’ expectations. The bank lowered its price target to $735 from $800. The revision offers a direct explanation for the pressure on the stock that day, while closing-price data show the move between sessions without identifying its causes on their own. FICO had announced the price hold on October 23, before the rating cut on October 26.
FICO is scheduled to hold a call on its fourth-quarter fiscal 2026 results on November 4 at 5:00 p.m. Eastern Time. The call will follow the announcement that the Preferred program price would be held, as VantageScore 4.0 becomes more widely available to approved lenders. The company also approaches the date after Wells Fargo cut its rating and price target, citing 2027 pricing that came in below expectations. The results date is the next announced milestone on the company’s calendar, while regulatory changes related to mortgage scoring models continue. The information provided included no new financial guidance from FICO for the next quarter.