FICO CEO defends credit score pricing amid FHFA criticism
In a Thursday interview with Jim Cramer from CNBC, Fair Isaac CEO Will Lansing, FICO credit score pricing is not a problem for the landlords, saying that the company’s last criticism returned to the company’s latest criticism.
“We are accused of raising our prices, and this is true, but according to what we offer, they are still very, very small.” He said. He continued: “We demand $ 4.95 for the mortgage score over $ 6,000 in closing costs. Therefore, the cost of a FICO score that creates problems for hosting.”
In May, Bill Pulte, the newly appointed president of the Federal Housing Finance Agency, scolded Fair Isaac for price increases. Then pulte announced This mortgage lenders can now choose to use a traditional FICO score or one of the rival Vantagescore to evaluate borrowers. Previously, the mortgage lenders who sell loans to Fannie Mae and Freddie Mac, which were supported by government -supported enterprises supporting the majority of housing mortgages in the United States, were allowed to use only FICO scores. Pulte continued later disdain Fair Isaac “as a monopoly who has been singing Americans for decades”.
Fico said The new policy supports a less foresictive credit score that weakens the safety and strength of businesses and their opposite sides “and” bringing a dangerous precedent “that increases the risk of negative election”.
Lansing reiterated the statement of his company by saying, “There is all kinds of safety and robust concern of security and robust,” FHFA’a actions.
According to Lansing, the fair Isaac has been competing with Vantage for 15 years and demonstrates the widespread use of the traditional FICO model. In addition, the fair Isaac’s new credit score model FICO 10T’nin classic model and Vantagescore’un better performance, he said.
“We have more than 90% market share in all other markets that have nothing to do with the government.” He said. He continued: “And then in the mortgage market, the FICO open industry standard in the inappropriate market without government authority.”
