FICO CEO Will Lansing on Industry Preference, Market Share, and Scoring Costs

FICO Score Industry Dominance

• 🎯 FICO score is the preferred industry standard, holding over 90% market share in markets unrelated to government mandates.
• 🚀 In the non-conforming mortgage market, FICO is the clear standard, with FICO 10T being adopted and used in $313 billion in originations.

Conforming Mortgages and Score Adoption

• 📊 On the conforming side, FICO Classic is still in use, with FHFA technically approving FICO 10T.
• ⚠️ There are concerns about the implementation timeline for FICO 10T compared to Vantage, with the latter being accepted on a different schedule.
• ⚖️ The FHFA's approach to score adoption raises safety and soundness concerns.

FICO's Pricing and Value

• 💰 While FICO has increased prices, they remain very small relative to the overall cost of services, such as mortgage closing costs.
• 🏠 A FICO mortgage score costs $4.95 out of approximately $6,000 in closing costs, indicating it's not a barrier to home ownership.
• 📈 FICO has been accused of raising prices, but the CEO emphasizes the value offered in return.