FICO Benefits from Direct Sales to Mortgage Resellers

24 days ago

Alex Semenova

"Farah Isaac Corporation, better known as FICO, will now sell credit scores directly to mortgage resellers. That is sending shares of some of those third-party credit bureaus tumbling today... FICO shares, on the other hand, are surging to the biggest intraday gain on record. Analysts at Needham said that they expect this to be significantly beneficial for FICO, while also keeping costs stable, both for homebuyers and mortgage originators."

FICO is leveraging its brand by entering the direct sales channel for credit scores to mortgage resellers. This move has created a favorable catalyst for FICO as evidenced by the record intraday gain in its share price, even as competitors like TransUnion and Equifax are suffering declines. Analysts view this strategic change as a significant positive for FICO, potentially creating a more stable cost structure for both consumers and mortgage originators.

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