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FICO Bypasses Credit Bureaus, Offers Scores Directly to Mortgage Providers
2 Oct, 2025
Summary
- FICO to offer its scores directly to firms that sell consolidated credit reports
- Equifax and TransUnion shares plunge 9% and 12% respectively
- FICO shares jump 20% on the news
- FICO says move will save lenders up to 50% on per-score fees
On October 2nd, 2025, FICO, the leading provider of credit scores, announced a major shift in how its scores are delivered to the mortgage industry. The company said it will now offer its FICO Direct Mortgage License Program, which will give tri-merge resellers—firms that combine data from the major credit bureaus into one report—the ability to calculate and distribute FICO scores directly to customers. This effectively eliminates the need for mortgage lenders to rely on the three nationwide credit bureaus, Equifax, TransUnion, and Experian.
The news has had a significant impact on the credit reporting industry. Shares of Equifax and TransUnion, two of the major credit bureaus, have plummeted by 9% and 12% respectively since the announcement. Experian, the third major credit score provider, also saw its shares drop in London trading. In contrast, FICO's stock has soared by around 20% on the news.
FICO's CEO, Will Lansing, called the change "a turning point in how credit scores are delivered and priced across the mortgage industry." The company says the new program will "streamline score access, saving lenders up to 50% on per score FICO fees." This disruption to the traditional credit reporting model is expected to have far-reaching implications for the mortgage industry in the coming years.
