FICO stock slides after TransUnion extends 99-cent pricing for VantageScore 4.0

Shares in Fair Isaac (FICO), which produces the FICO score, slumped 17% in Tuesday premarket trading after TransUnion (TRU) extended its mortgage pricing for VantageScore 4.0 through December 2028. The TransUnion move is aimed at increasing competition for mortgage credit scores, which would chip away at FICO's market share, the industry standard for decades.

TransUnion (TRU) and Equifax (EFX) stocks were unchanged. VantageScore is owned by TransUnion, Equifax, and Experian (EXPGY) (EXPGF).

Under the extended program, VantageScore 4.0 will continue to be available for $0.99 per mortgage origination score when ordered on a standalone basis. TransUnion (TRU) will also continue to offer VantageScore 4.0 at no additional cost to mortgage customers who purchase a FICO score.

"By extending our pricing through the end of 2028, TransUnion is offering three years of price stability while supporting greater competition and score choice in the mortgage market," said Satyan Merchant, senior vice president and mortgage business leader at TransUnion.

The price extension comes after the Federal Housing Finance Agency expanded VantageScore 4.0 availability to approved Fannie Mae (FNMA) and Freddie Mac (FMCC) lenders. Furthermore, the FHFA plans to accept mortgage collateral backed by VantageScore 4.0 beginning Jan. 1, 2027, which could broaden access to homeownership for more creditworthy Americans, TransUnion (TRU) said.

VantageScore 4.0 is a credit-scoring model that incorporates credit data insight along with rental and utility tradelines to offer a more complete view of consumer credit behavior.

The company said it's seeing growing interest from lenders evaluating or implementing the model for origination, prequalification, and portfolio risk management. Between January and September 2026, VantageScore 4.0 adoption expanded to more than 1,100 mortgage lenders, including nine of TransUnion’s (TRU) 15 largest mortgage lender customers.

FHFA Director Bill Pulte has repeatedly criticized FICO (FICO) for the price of its credit ratings used in mortgage lending decisions.

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