Competitive Landscape & Market Dynamics - The industry is observing how lender choice impacts the adoption of different scoring models, including those from competitors like Vantagescore [2] - FICO scores are considered an industry standard due to their predictive accuracy over a long period [1][12] - The mortgage market has seen a slight pickup, but rates remain relatively high [19] FICO's Value Proposition & Pricing - FICO argues its score represents a small fraction (approximately $4.95) of the total closing costs (around $6,000) in a mortgage transaction, highlighting its value [11][14] - Despite past price increases (e.g., from sub $1.20 to almost $5), FICO believes its pricing remains a bargain considering the value it provides [13][14] - FICO aims to close the value gap and raise prices predictably, without shocking the system [12][13] Risk Assessment & Credit Standards - There are concerns that Vantagescore's looser credit standards could lead to a "race to the bottom," potentially increasing credit defaults and capital requirements [9] - While alternative data like rental history can be useful, the limited availability of such data in credit files is a challenge [7][8] - FICO emphasizes the importance of a minimum of six months of data for accurate scoring, contrasting with Vantagescore's one-month standard [8] Regulatory & Implementation Issues - The FHA is considering using both Vantage and FICO Classic scores, while FICO 20 is still approved [5] - FICO 20 outperforms Vantage, potentially qualifying 5% more borrowers and resulting in lower credit defaults [5] - FICO hopes for the public release of data from Fannie and Freddie that supports FICO's predictive accuracy [17][18]