Credit-scoring giant Fair Isaac Corp slumps following FHFA director Bill Pulte's comments
27/05/2025 17:54
** Shares of credit-scoring giant Fair Isaac Corp FICO.N drop 8.6% to $1,548, hitting a nine-month low ** Stock down for the fifth straight session, its sharpest drawdown since 2020 ** "Still not happy with FICO. We should be making some decisions on all related items in next 1-3 weeks" - Bill Pulte, director, U.S. Federal Housing Agency (FHFA), in response to a post on rising cost of mortgage on social media platform X.com ** According to Jefferies, stock's slide began after Pulte at a conference on May 20 said, "I think FICO should make sure they're being as economical as possible. We're actively looking at getting it done." ** The slump was based on investors' concerns that regulators will begin to more closely scrutinize mortgage costs, Jefferies analysts said in a note last week ** Businesses use FICO scores to weigh risks involving consumer transactions that might include a new loan or credit card, renting an apartment, or access to lower insurance rates ** In February, FICO reported a 25% jump in Q2 profit, helped by growth in its scores segment ** FICO top loser on S&P 500 .SPX by 12:38 p.m. ET, taking its YTD losses to about 15%, compared to 0.5% for the S&P 500 .SPX (Reporting by Medha Singh) ((medha.singh@thomsonreuters.com))