The shift comes as competition intensifies in the credit scoring market, driven by the Federal Housing Finance Agency (FHFA)’s decision to allow Fannie Mae and Freddie Mac to purchase loans underwritten with VantageScore 4.0 as an alternative to the Classic FICO score. VantageScore is jointly owned by the three national credit bureaus — Equifax, TransUnion and Experian.
Last week, FICO unveiled a new performance-based pricing model for its scores distributed through tri-merge resellers. Under the new structure, a $4.95 royalty fee per score and a $33 funded loan fee (per borrower, per score) will apply when the loan closes.
Lenders that prefer to stick with the traditional per-score model will continue to pay $10 per score, consistent with previous pricing, FICO said. Lenders can also continue working directly with the credit bureaus if they choose.
In the mortgage space, the move was viewed by some as a step toward greater competition, but others warned it could increase credit score costs in the short term. Industry executives said the change effectively redirects some revenue from the credit bureaus to FICO by making resellers direct clients of the score provider. But since the bureaus still control essential consumer credit data — including tradeline information — sources cautioned they could raise their own fees to compensate for lost revenue.
The response? “Equifax is supporting U.S. consumers and our mortgage customers with 2026 VantageScore 4.0 pricing at over 50% below FICO’s aggressive 2026 $10 pricing,” Mark W. Begor, CEO of Equifax, said in a statement. “We are committed to holding the $4.50 score pricing for two years to give lenders the confidence they need to convert to the higher-performing VantageScore.”
Equifax said VantageScore 4.0 provides a more comprehensive view of consumers’ financial profiles by using trending and alternative data — such as rent, utility and telecommunications payment histories. The company claims the model delivers a 20% increase in originations without additional risk. Both VantageScore and FICO have released studies asserting the superior accuracy of their respective credit models.
“We are also continuing to enhance the value that the Equifax mortgage credit file provides by including income and employment indicators and alternative data alongside credit data at no charge — to deliver more value to our customers and expand credit access to more U.S. consumers. We are committed to responsibly supporting consumers and the mortgage industry with the fullest insights available,” Begor added.
Equifax said it’s the first to offer telecom, pay TV and utility data alongside tri-merge credit reports for mortgage lenders at no extra charge, as well as an employment status indicator earlier in the qualification process through The Work Number report.
Similar indicator reports for the automotive, credit card and consumer finance industries are slated for release in 2026.
