FHFA opens VantageScore 4.0 to all GSE lenders immediately

Fair Isaac Corp (FICO) shares fell 15.2% after FHFA approved VantageScore 4.0 for Fannie Mae and Freddie Mac mortgage loans, introducing competition to FICO's Classic model. FICO's stock is down 43.2% YTD, trading at $933.70, 50.3% below its 52-week high. The company has seen significant volatility, with 28 moves greater than 5% over the past year.

TransUnion (NYSE:TRU) shares fell 7.02% to $78.96 on Friday after FHFA Director Bill Pulte criticized credit bureaus for 'cartel-like' pricing and hinted at a 'bi-merge' model for mortgage data, reducing required bureaus from three to two. Pulte also demanded fee reductions from the bureaus.

U.S. stock indices fell midday Sept. 4 on a strong jobs report, raising rate hike concerns. Lululemon (LULU) dropped 18% on revenue decline and outlook cut. FICO (FICO) fell 16% after FHFA criticism. Gold and 10-year Treasury yield also moved.

Fair Isaac (FICO) stock fell 17.8% after U.S. Federal Housing Finance Agency Director Bill Pulte announced Fannie Mae and Freddie Mac will accept Vantage credit scores, a competitor to FICO's. The Trump Administration aims to reduce homeownership costs by promoting competition, potentially impacting FICO's profitability.

Equifax (EFX) stock fell 8.4% to $173.27 after FHFA Director Pulte accused credit bureaus of overcharging and announced plans to end the practice, favoring VantageScore 4.0. Pulte also suggested reducing data sources for mortgage lenders. Equifax's CFO filed to sell shares worth $845,820, adding to the selloff. Experian and TransUnion also declined due to regulatory pressure.

Fair Isaac Corp (FICO) stock fell 6.6% in pre-market trading after the U.S. Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to approve all lenders to use VantageScore, threatening FICO's mortgage market dominance. The move follows a Q3 revenue miss, an analyst downgrade, and insider selling. UBS maintains a Neutral rating with a $1,130 price target.