WASHINGTON — FICO is offering mortgage lenders and brokers a freeze on its $10 wholesale score price if they commit to purchasing its scores through participating resellers.
Under the offer, lenders and brokers enrolled in FICO’s Preferred Program through participating tri-merge resellers can purchase Classic FICO and FICO Score 10T together at the same wholesale price offered a year ago, according to National Mortgage Professional.
Eligibility depends on commitments to buy FICO scores through those partners.
The pricing offer comes as credit reporting companies introduce options that allow mortgage originators to separate purchases of credit reports and scores, potentially delaying some costs until borrowers advance further in the loan application process, National Mortgage Professional said.
For lenders already purchasing FICO scores throughout the origination process, the price freeze could provide more predictable expenses. But lenders seeking to reduce early-stage score purchases must weigh any purchasing commitments against potential savings. A fixed price per score does not necessarily mean lower overall costs if a lender is required to buy more scores than it otherwise would.
Credit Purchasing Options Expand
Equifax and TransUnion recently introduced products designed to give lenders more control over when they pay for credit scores, according to National Mortgage Professional.
TransUnion’s First Look Functionality for Mortgage lets lenders initially obtain credit information and add scores later. If eligibility and matching conditions are satisfied, lenders can obtain additional scores without buying another credit report. The service supports soft- and hard-credit inquiries through mortgage resellers.
Equifax’s Mortgage Score Select allows lenders and brokers to request a credit file with Classic FICO, VantageScore 4.0 or no score. Customers can retrieve the file again within 24 hours for $1, plus the price of any selected score.
The tools are intended to help lenders manage costs on mortgage applications that do not ultimately close, including by postponing some score purchases until a borrower is more likely to proceed.
TransUnion also extended its 99-cent pricing for VantageScore 4.0 mortgage scores through the end of 2028, with no additional score charge when purchased alongside FICO. Neither that advertised price nor FICO’s quoted score price represents the full cost of a credit report.
Mortgage Scoring Preferences Shift
Rocket Mortgage has announced plans to make VantageScore 4.0 its preferred scoring model for eligible loans during the fourth quarter, following months of testing alongside FICO, National Mortgage Professional reported. Its broker channel, Rocket Pro, will continue to offer both models.
FICO’s offer could help keep its scores in lenders’ purchasing workflows even as some lenders turn to alternative models. The bundle also combines its long-established Classic FICO scores with the newer FICO Score 10T.
National Mortgage Professional noted that lenders and brokers evaluating the competing offers should consider their total credit costs, including initial inquiries, added scores, repeat reports and applications that never reach closing. Reseller agreements and investor requirements also can affect which option is most economical.
