🔴 FICO is trading 4% down today as FHA adopts competitor's credit score for mortgages

FICO's stock is declining in after-hours trading after the Federal Housing Administration (FHA) announced it will join Fannie Mae and Freddie Mac in using VantageScore 4.0 for mortgage underwriting, a direct competitor to FICO.

• This move introduces significant competition into the U.S. mortgage market, where FICO has long been the dominant credit score provider.
• The stock previously closed the regular session at $1004.38 (+2.51%) before the negative reaction to the news in post-market trading.
• The change is intended to increase competition and potentially lower costs for borrowers in the mortgage industry.