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FICO
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35 mins

What FICO’s credit-score shake-up really means for home buyers

1. FICO now allows lenders to access credit scores directly, bypassing credit bureaus. 2. This may reduce costs for lenders, potentially helping consumers save on mortgages. 3. FICO's royalty fees for credit scores increased significantly, raising costs for borrowers. 4. Government moves to allow VantageScore use challenge FICO's dominance in the market. 5. Consumer complaints about credit scores remain high, indicating systemic frustrations.

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FAQ

Why Bullish?

This change could increase FICO's revenues from direct sales. Historically, market shifts that enhance direct access for lenders tend to benefit related companies financially.

How important is it?

The direct sale initiative enhances competitive positioning and revenue clarity for FICO, impacting market dynamics.

Why Short Term?

Immediate cost savings for lenders may lead to quicker revenue changes. Historically, industry responses to market reforms manifest swiftly due to competitive pressures.

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