MarketPR
$FICO is in focus after PulteGroup directed Fannie Mae and Freddie Mac to open VantageScore access to all lenders for mortgage underwriting, with shares declining on the session.
A formal policy response from Fannie Mae or Freddie Mac is the next confirmable milestone. PulteGroup's directive targets the underwriting standards Fannie Mae and Freddie Mac set across the mortgage lending channel.
If the two act on the direction, VantageScore would gain throughput across the full lender base, creating an alternative to FICO at the credit-score stage of origination.
That shift in the pipeline is what the session move in $FICO appears to reflect. What to watch is whether Fannie Mae or Freddie Mac issue a formal announcement or filing on VantageScore acceptance.
Keep reading