FICO Score Initiatives & Updates
Stay informed on FICO credit scoring developments and how they impact your mortgage business. Here's what you need to know about new pricing models, direct licensing options, and the evolving competitive landscape in credit scoring for GSE lending.
| October 1, 2025
FICO Launches Direct Licensing Program
FICO launched the Mortgage Direct License Program, allowing tri-merge resellers to calculate and distribute FICO scores directly, bypassing traditional credit bureau distribution. The program aims to reduce bureau markups and increase pricing transparency. FICO introduced two pricing models: a performance-based model at $4.95 per score plus $33 per borrower when loans close, and a legacy per-score model at $10 per score with no closing fee.
What This Means for You
You now have more flexibility in how you obtain FICO scores and potentially lower costs through direct licensing arrangements with tri-merge resellers. The performance-based pricing model means you only pay the $33 fee on closed loans, which could reduce costs for applications that don't close. You need to evaluate which pricing model works better for your business based on your close rates and application volume, and monitor which resellers sign direct licensing agreements.
| July 8-15, 2025
FHFA Allows VantageScore 4.0, Delays FICO 10T Adoption
FHFA Director Bill Pulte announced via social media that lenders can choose between Classic FICO or VantageScore 4.0 for GSE loans, but notably excluded FICO 10T from the initial lender choice options. The July 15 clarification stated that the Enterprises are expected to publish historical FICO 10T data and adopt scores from the model "at a later date," with no specific timeline provided.
What This Means for You
FICO 10T, despite being validated in October 2022, remains unavailable for GSE lending nearly three years later. You face a choice between Classic FICO and VantageScore 4.0, but cannot access the FICO 10T model that was supposed to be the updated FICO option. This creates uncertainty about whether FICO 10T will ever be implemented for conforming loans, potentially affecting your long-term technology and training investments.
| January 17, 2025
FICO 10T Implementation Indefinitely Delayed
Fannie Mae and Freddie Mac announced they would not require lenders to switch to FICO 10T and VantageScore 4.0 in Q4 2025 as originally planned. The implementation date was changed to "TBD" (to be determined), with the primary issue being that FICO has not released historical data for FICO 10T that lenders need to analyze and prepare for the transition. VantageScore 4.0 historical data was released in July 2024, but FICO 10T data remains unavailable.
| November 6, 2024
FICO Announces Royalty Increase to $4.95 Per Score
FICO announced that its wholesale royalty would increase from $3.50 to $4.95 per score for mortgage originations in 2025, representing a 41% increase. Credit bureaus were notified on October 30, 2024. This marks the third consecutive year of FICO price increases and the fourth royalty change in FICO's 30-year history in mortgage lending, apart from inflation adjustments.
| July 11, 2024
VantageScore 4.0 Historical Data Released, FICO 10T Still Pending
FHFA announced that Fannie Mae and Freddie Mac released historical credit scores associated with VantageScore 4.0 on tens of millions of loans acquired beginning in April 2013. This allowed lenders to analyze and understand the VantageScore 4.0 model. However, FHFA stated they continue to work towards providing similar data for FICO 10T, with the release date remaining "to be determined."
|February 29, 2024
FHFA Aligns Implementation Timeline for Q4 2025
FHFA announced it would align the bi-merge credit reporting requirement with the transition from Classic FICO, with both changes expected in Q4 2025. The agency also announced accelerated publication of VantageScore 4.0 historical data to Q3 2024, while continuing to work towards providing FICO 10T data "contingent upon achieving the necessary conditions for acquisition and publication."
| November 30, 2023
FICO Eliminates Tiered Pricing, Raises Rates to $3.50
FICO scrapped its controversial tier-based pricing structure and moved to a flat $3.50 per score for all lenders in 2024. The change came after industry feedback about the tiered system, but represented significant increases for large lenders who previously paid minimal fees. FICO also began charging the same price for soft pulls and hard pulls, eliminating the previous discount for pre-qualification credit checks.
| March 23, 2023
FHFA Announces Initial Implementation Timeline
FHFA announced the first implementation timeline for FICO 10T and VantageScore 4.0, with Phase 1 (delivery and disclosure) estimated for Q3 2024 and Phase 2 (incorporation into pricing, capital, and other processes) estimated for Q4 2025. The agency began gathering stakeholder input on the proposed milestones and stated that once implemented, lenders would be required to deliver both FICO 10T and VantageScore 4.0 scores with each loan.
| October 24, 2022
FHFA Validates FICO 10T and VantageScore 4.0
FHFA approved both FICO 10T and VantageScore 4.0 for GSE use, ending the exclusive use of Classic FICO. FICO 10T introduced trended credit data, offering a more comprehensive view of consumer credit behavior over time rather than just a snapshot. The validation confirmed both models exceeded required thresholds for accuracy, reliability, and integrity.
September 1, 2022 (Announced) / 2023 (Implemented)
FICO Implements Tiered Pricing
FICO introduced a tier-based royalty structure for mortgage, charging $0.60 to $2.75 per score based on lender volume. This represented the first major pricing change in nearly 30 years. The tiered structure meant smaller lenders faced price increases of up to 400%, while the largest 46 lenders saw minimal impact. Industry groups criticized the lack of transparency around tier assignments.
| 2018
Credit Score Competition Act Mandates Change
The Credit Score Competition Act was signed into law, mandating FHFA to establish a process for validating alternative credit scoring models for Fannie Mae and Freddie Mac. This legislation broke the requirement that only Classic FICO could be used and opened the door for competition, notably from VantageScore. The law also marked the period when FICO royalties began to increase from the flat $0.50-0.60 per score that had been in place for decades.
| Pre-2018
Classic FICO as Exclusive Standard
Classic FICO was the only credit score model accepted by Fannie Mae and Freddie Mac, with required use of tri-merge credit reports from Equifax, Experian, and TransUnion. This exclusive arrangement had been in place for decades, with FICO scores becoming synonymous with mortgage credit scoring. FICO royalties remained flat at approximately $0.50-0.60 per score for nearly 30 years during this period.
