FICO's Business Performance - FICO experienced 20% growth overall, with 37% growth in the B2B portion of its scores business [4] - The scores business has demonstrated double-digit revenue and profit growth for several years [5] - FICO's volumes are approximately 40% below their peak [26] FHFA and Regulatory Issues - The FHFA (Federal Housing Finance Agency) is allowing lenders to use different credit score models for mortgages sold to Fannie Mae and Freddie Mac [2] - The FHFA director, Bill Py, has referred to FICO as a monopoly [1] - FICO 10T is technically approved by the FHFA, but its implementation timeline is not the same as Vantage [19] - Concerns exist regarding the safety and soundness of the FHFA's approach [20] FICO 10T vs VantageScore - FICO 10T outperforms FICO Classic, with 18% fewer credit defaults [13] - FICO maintains over 90% market share in markets outside of government mandates [17] - In the non-conforming mortgage market, $313 billion in originations have been done with FICO 10T [18] - FICO scores cost $4.95 out of $6,000 in mortgage closing costs [21] FICO Classic and Market Stability - FICO Classic has been used for the last 20 years and is highly optimized [11] - The industry has models built on FICO Classic, and regulators use it for capital adequacy assessments [12] - FICO Classic has been stress-tested through the 2008 downturn [23][24]

Market Position and Competition - FICO consistently outperforms Vantage in the market, securing over 90% market share in non-government sectors [1] - FICO 10T has achieved significant adoption in the non-conforming mortgage market, with $313 billion in originations [1] - While FICO 10T is technically approved by the FHFA, its implementation timeline may differ from Vantage [1] Pricing and Cost - The cost of a FICO score is $4.95 for a mortgage score, which is a small fraction of the $6,000 in closing costs [3] - The company acknowledges price increases but emphasizes their relative insignificance compared to the value provided [3] Industry Preference - FICO is the clear industry standard in the non-conforming mortgage market [1] - The industry widely uses FICO scores [1]