FICO Withholds 2027 Guidance as Mortgage Pricing Model Shifts

FICO is overhauling how it charges for credit scores, and the uncertainty is significant enough that the company is withholding financial guidance for 2027. For years, lenders paid a flat fee for mortgage origination scores. Now, FICO is moving toward a tiered pricing model. This shift is happening while the housing market remains sluggish due to high interest rates. While the immediate news focuses on mortgages, this signals a broader trend in how credit data is monetized across all retail sectors. For business owners and retailers, this means the cost of assessing consumer risk is changing. FICO is facing pressure from competitors and regulators who want to see more diversity in credit scoring models. If you offer high-ticket financing—like for home improvements or HVAC systems—keep a close eye on your lending partners. As the cost for lenders to pull FICO scores increases or changes structure, those costs often trickle down to the merchant in the form of higher discount rates or stricter approval tiers. The transition suggests that the 'standard' cost of credit data is a thing of the past, and lenders will be looking for more cost-effective ways to vet customers without sacrificing accuracy.

Source: PYMNTS

← Return to the library· Submit a correction