Overview

• FICO launched a program that lets tri-merge resellers calculate and deliver FICO scores directly to mortgage lenders, reducing reliance on Equifax, Experian and TransUnion.
• Under the new model, FICO charges a $4.95 royalty per score plus a $33 per-borrower funded-loan fee, with a $10 per-score option still available through resellers.
• FICO said its scores remain available through the bureaus, but it does not control any pricing mark-ups applied in those channels.
• Credit-bureau shares fell after the announcement, with Experian down 5% in London, Equifax off 11% in premarket trading, and TransUnion down 9%.
• Analysts said the change cuts bureau mark-ups and could reduce bureau earnings by about 10% to 15%, following competitive pressure after FHFA’s approval of VantageScore 4.0.