Oct 2 (Reuters)
FICO shares surged in Thursday morning trading after the U.S. data analytics company said it would license its credit scores directly to mortgage resellers, its used by nearly 90% of lenders to evaluate a borrower's creditworthiness.
"This new distribution model will allow lenders to avoid paying the current about 100% markup the credit bureaus currently charge for the FICO score," analysts at brokerage Raymond James said.
Citigroup analysts said direct licensing would cut out the margin that companies such as Experian and Equifax make on the FICO credit score.
Experian (EXPN.L) shares were down 4.8% in London. U.S.-listed Equifax (EFX.N) fell 7%, while TransUnion (TRU.N) was last down 11%.
Full Story: https://www.reuters.com/business/shares-credit-bureaus
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