Pulte's X post wipes $4B off FICO's value

Bill Pulte, the Federal Housing Finance Agency director appointed by Donald Trump who oversees mortgage behemoths Fannie Mae and Freddie Mac, has cut $4 billion from credit giant FICO's market capitalization with a single post on X.

The government-backed mortgage enterprises will now set mortgage rates using VantageScore 4.0 on the same pricing grid as FICO's Classic score.

This shift, which benefits FICO's rival, puts an end to the setup that pushed millions of conventional US mortgage applications through FICO's tollbooth.

On Monday, Pulte wrote that Fannie Mae and Freddie Mac will be "simplifying mortgage pricing" by removing FICO's customary and arguably monopolistic role in mortgage applications.

Despite the fact that swapping one monopoly for a duopoly is not exactly competition, Pulte declared to the dismay of executives at Fair Isaac Corporation, the maker of FICO credit scores, "Fannie and Freddie are hereby moving to ONE PRICING GRID with VantageScore joining the existing FICO Classic pricing grid."

In pre-market trading today, NYSE-listed FICO stock had dropped by over 20%, losing more than $3 billion. By 11am, the decline had widened to nearly 30%, with the market cap loss exceeding $4 billion.

We are Simplifying Mortgage Pricing following feedback from lenders and consumers. Instead of two separate pricing grids, which makes zero sense, Fannie and Freddie are hereby moving to ONE PRICING GRID with VantageScore joining the existing FICO Classic pricing grid. pic.twitter.com/g9h1EqsDca

— Pulte (@pulte) September 28, 2026

Rocket Mortgage, a major home lender with strong ties to Fannie Mae, Freddie Mac, and veterans' loans, wasted no time in announcing it would favor FICO's competitor.

Beginning in the fourth quarter, Rocket will make VantageScore 4.0 the default instead of FICO's score on eligible direct-to-consumer loans. 

Rocket Mortgage went even further, twisting the knife by citing average savings of $1,600 at closing for applicants thanks to VantageScore 4.0. 

Mortgage pricing grid change costs FICO billions

Pulte applauded Rocket Mortgage's move away from FICO, saying President Trump deserved the credit for the purported savings.

Before yesterday's announcement from Pulte, Fannie and Freddie incorporated risk into every conforming mortgage via loan-level price adjustments, fees tied to credit score, and the size of the down payment.

Classic FICO was the sole score those interest rate pricing grids accepted, so every conforming mortgage required buying a score for each applicant from FICO.

VantageScore 4.0, FICO's main rival created by Equifax, Experian, and TransUnion, got full GSE access on September 9. However, Fannie and Freddie still placed it on separate grids and treated it as if it were 20 points lower. 

Furthermore, third-party analyses determined that VantageScore-priced loans were more expensive than FICO-priced loans in many instances.

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Pulte ends FICO 'monopoly'

Monday's change eliminates the second grid, forcing FICO and VantageScore to compete head-to-head. With the same fee tier, a lender can now skip FICO altogether and still produce a Fannie-/Freddie-conforming mortgage application.

In Pulte's personal view, "FICO has enjoyed a monopoly." The housing director also asserted that the company has raised its prices "1,800%" since 2020.

FICO stock reached an all-time high of $2,402 in November 2024. It now trades 75% lower, below $610. 

Over the last month, the company has lost half its value, shedding over $12 billion of market cap as regulatory shifts have eroded its pricing power.