Reported 22 days ago
FICO, the leading credit score company, saw its stock drop over 17% after the Federal Housing Finance Agency announced that lenders could use VantageScore for government-backed mortgages. This change, aimed at increasing competition and reducing costs, allows a broader assessment of creditworthiness, including rent payments, which FICO’s model does not consider. While this could challenge FICO’s dominance, some analysts believe lenders will continue to favor FICO due to their limited experience with VantageScore.
Source: YAHOO