Morgan Stanley Adjusts Price Target on TransUnion to $85 From $92

Equifax (EFX) and TransUnion (TRU) shares fell 4% and 7% respectively after reports that FHFA may ease mortgage credit report rules. TransUnion trades near its 52-week low, down 27% YTD. The change could impact revenue and EBITDA for both firms. TransUnion reported strong Q2 earnings, with mixed analyst reactions to its price target. The company also faces credit scoring landscape shifts.

Fair Isaac, Equifax, and TransUnion shares fell in premarket trading after reports that the FHFA may require lenders to use only two of the three major credit bureaus for mortgages sold to Fannie Mae and Freddie Mac. FHFA Director Bill Pulte indicated the change could be announced as early as Monday. Bank of America cut its rating on Fair Isaac to Neutral, lowering its price target to $700.

The Federal Housing Finance Agency (FHFA) plans to direct Fannie Mae and Freddie Mac to require lenders to use credit data from two bureaus instead of three. This change, which could be announced by FHFA Director Bill Pulte on Oct. 12, may reduce costs but has drawn criticism from some lawmakers. TransUnion and Equifax shares fell in after-hours trading. The move follows Pulte's earlier decision to adopt VantageScore 4.0 for mortgage pricing.

Fair Isaac (FICO) and TransUnion shares dropped 7% and 6% respectively in after-hours trading after Bloomberg reported US housing regulators plan to reduce mortgage credit checks from three to two bureaus. The change, potentially announced by FHFA director Bill Pulte, aims to lower credit reporting costs. Fair Isaac's stock had already fallen 27% earlier this week.

Nike (NKE) shares dropped 3% after reporting mixed Q1 results, with revenue missing estimates. FICO and TransUnion (TRU) fell 7% and 6% respectively due to potential regulatory changes affecting mortgage lending. Synaptics (SYNA) rose 15% and ON Semiconductor (ON) gained 6% after revising their merger agreement, with ON Semiconductor to acquire Synaptics for $123 per share.

Fair Isaac (FICO) shares fell 7% after-hours, and TransUnion dropped 6% following a Bloomberg report that the FHFA may require lenders to use data from two credit bureaus instead of three. FHFA Director Bill Pulte aims to reduce costs in the mortgage market. FICO's stock has dropped nearly 49% in September due to FHFA's changes favoring VantageScore. The FHFA did not comment on the report.