TransUnion : Statement on FICO Price Announcement

TransUnion is disappointed to see FICO more than doubling its pricing at the expense of consumers. They have also introduced a new $99 penalty fee on each homebuyer ($198 for each couple co-purchasing a home). Both of these tactics fly in the face of recent market changes intended to reduce costs for consumers and ensure a healthy US mortgage system.

Importantly, while FICO characterizes their changes as "eliminating reliance on the three nationwide credit bureaus," it is, of course, the credit bureaus that provide the vital data upon which FICO scores are calculated. Without credit data, there can be no FICO score.

At a time when hopeful homebuyers are looking for certainty, FICO's unilateral price increases create unnecessary complication in the mortgage process and additional cost burdens on consumers. Resellers and other industry participants would also bear the brunt of these changes which serve only to increase FICO's revenues. Implementation of any such change is neither certain nor likely to occur near-term.

TransUnion is encouraged by FHFA Director Pulte's leadership in credit score competition, and we believe the combination of trended credit information and the VantageScore 4.0 score will drive greater financial inclusion and access to affordable housing.

We will continue advocating for a system that benefits market participants equitably, with consumers at the center, as opposed to radical change that benefits a single industry player at the expense of American families.