CDIA warns FICO’s new pricing will raise costs for lenders and consumers
The Consumer Data Industry Association (CDIA) has criticized FICO’s latest direct licensing program, calling it a disguised price hike that threatens to drive up costs across the mortgage industry.
The association, which represents the nation’s credit bureaus and consumer reporting agencies, argued that FICO’s move will “inevitably cause lenders to pass on significantly higher costs to consumers.”
FICO’s new direct license program, announced last week, allows mortgage resellers to purchase credit scores directly from FICO, bypassing the traditional channels of Experian, Equifax, and TransUnion.
The company has promoted the change as a way to increase transparency and cut costs, offering a new “performance model” with a $4.95 per-score royalty fee and a $33 per-funded-loan fee, or the option to stick with the existing $10 per-score rate.
But the CDIA pushed back, stating, “While the Direct License Program announced by FICO is positioned as a cost-cutting measure, it is simply not true. In reality, it is another price increase by FICO. With this announcement, FICO has at least doubled its publicly disclosed prices year-over-year while introducing operational costs and risks to resellers and lenders.”
The group warned that the new pricing structure “validates the need for a competitive mortgage scoring market that puts the consumer first.”
Industry analysts have echoed concerns about the impact on the broader credit ecosystem. Citigroup analysts estimated the change could cut bureau earnings by 10% to 15%, noting, “It implies that this would cut out the margin that the likes of Experian and Equifax make on the FICO credit score.”
FICO’s shares surged more than 10% on the news, while the major bureaus saw their stocks tumble.
Fair Isaac Corp (FICO) has announced it will license its credit scores directly to mortgage resellers, bypassing the traditional gatekeepers—Experian, Equifax, and TransUnion.https://t.co/gQK6LY0COw
— Mortgage Professional America Magazine (@MPAMagazineUS) October 2, 2025
The CDIA also highlighted concerns about the integrity of credit scoring. “FICO is also ignoring the reality that comprehensive data is the foundation of powerful and predictive credit scores and the safe and sound functioning of the U.S. mortgage market,” the association said.
The group voiced support for Federal Housing Finance Agency (FHFA) Director Bill Pulte's call for “creative and constructive action” to foster competition, including the introduction of VantageScore as an alternative for Fannie Mae and Freddie Mac loans.
FICO CEO Will Lansing defended the move, stating, “Direct licensing of the FICO Score brings transparency, competition, and cost-efficiency to the mortgage lending process. This change eliminates unnecessary mark-ups on the FICO Score and puts pricing model choice in the hands of those who use FICO Scores to drive mortgage decisions.”
The direct licensing model arrives amid a year of upheaval in mortgage credit scoring, with regulators and industry players pushing for greater competition and innovation.
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