Fair Isaac Corporation (NYSE:FICO) has been recognized as one of the top American stocks to invest in for the next three years. On October 1, FICO unveiled the FICO Mortgage Direct License Program, a significant shift in the delivery and pricing structure of FICO Scores within the mortgage sector. Announced from Bozeman, Montana, this initiative allows tri-merge resellers to directly calculate and provide FICO Scores to their customers, removing the dependency on the three major credit bureaus.
This change aims to enhance price transparency and yield substantial immediate cost reductions, potentially saving lenders up to 50% on per-score FICO fees by eliminating credit bureau mark-ups. Companies can still choose to work through the credit bureaus if preferred. To enhance flexibility, FICO is introducing two new pricing models.
The first model is a new performance-based structure tied to successful mortgage funding, acknowledging the essential role of the FICO Score in facilitating mortgage liquidity. Under this model, the royalty fee for a FICO Score will be set at $4.95, representing a 50% reduction in the average per-score fees for tri-merge resellers as a result of the removal of credit bureau charges.
Fair Isaac Corporation (NYSE:FICO) specializes in software development with analytics and digital decision-making technologies aimed at automating, enhancing, and connecting enterprise decisions across the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
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Disclosure: None. This article was originally published at Insider Monkey.
