Why Fair Isaac Stock Crashed Today

Yahoo Finance ·

Fair Isaac Corporation ( FICO -15.53% ) stock, home of the famous FICO score , tumbled 17.8% through 10:55 a.m. ET Friday. You can blame the Trump Administration for that. And U.S. Federal Housing Finance Agency Director Bill Pulte in particular. Pulte announced last night that he has directed the heads of Fannie Mae and Freddie Mac to accept mortgage loans for purchase from banks when those loans were issued in reliance on a Vantage credit score rather than the more traditional FICO score. Created in 2006 as an alternative to FICO, Vantage is a credit score created in cooperation by the three major credit bureaus, Equifax , Experian , and TransUnion . It's failed to reach critical mass since then, but with a helping hand from the U.S. government, investors are wondering whether this time might be different -- and whether that could be bad news for FICO.

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