Fair Isaac Corp. (FICO) announced an increase in mortgage credit score prices for 2025, setting off a wave of reactions across the mortgage industry. Jim Wehmann, FICO's executive vice president of scores, confirmed that FICO's wholesale royalty will rise to $4.95 per score for mortgage originations next year—a notable increase from the current $3.25 per score. This change impacts the cost of tri-merge reports, which aggregate credit scores from all three credit bureaus and are commonly required in mortgage applications.

Wehmann emphasized that despite the increase, the cost remains a small percentage of overall mortgage closing costs. He shared that FICO decided to go public with this information to address misinformation regarding FICO's role in mortgage lending.

“At this new per-score royalty, the amount collected by FICO remains a small part of the tri-merge credit report bundle cost…a very minor share of total mortgage closing costs,” Wehmann explained in a blog post.

However, reactions from industry stakeholders indicate frustration. The Community Home Lenders of America criticized the price increase, describing it as a burden on consumers amidst high housing costs. The Mortgage Bankers Association (MBA) also expressed concerns, highlighting that lenders are mandated to use FICO scores, thus limiting consumer options.

Bob Broeksmit, president of the MBA, urged regulators, including the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), to investigate the impact of such pricing structures on consumer credit costs.

The mortgage community shared additional concerns on public forums. Greg Sher from NFM Lending highlighted the industry’s dependence on FICO, describing the increase as exploitative without viable alternative scoring options. Other professionals echoed similar sentiments, underscoring how this price hike contrasts with efforts to lower consumer costs.

FICO’s pricing practices have drawn attention from politicians. In October, 34 members of Congress requested the Department of Justice and the CFPB investigate FICO for potential anti-competitive behavior. Lawmakers suggested implementing fee caps and interoperability standards to make credit score data more accessible.

The mortgage industry’s dependency on FICO scores combined with rising costs has created a complex issue, with stakeholders calling for regulatory intervention. As 2025 approaches, it remains to be seen how this price adjustment will impact mortgage costs and consumer accessibility.