Fairway Home Mortgage, Movement Mortgage, Rate Join FICO® Preferred Program

What happened

FICO announced that Fairway Home Mortgage, Movement Mortgage and Rate enrolled in the FICO Preferred Program and will continue to pull FICO Scores across their mortgage lending operations. Together, the three lenders represent a broad cross-section of the mortgage market.

Confirmed

Global impact / market context

For FICO, more lenders using its scores supports recurring revenue from credit checks tied to mortgage applications. For lenders, the program offers access to the score the industry relies on today and FICO's most predictive credit score for the future, which may help them assess borrower risk.

Analyst inference

Mortgage lenders rely on credit scores to judge borrower risk and set loan terms. Enrollment by a retail lender, a digital lender and a lender active in correspondent and secondary markets suggests credit score use remains widespread across the mortgage chain, which matters for FICO's revenue.

Analyst inference

What to watch

1. Fairway said it will continue to evaluate FICO Scores across its eligible loan products and programs, a signal that score use is tied to the range of loans it offers borrowers. Confirmed
2. Watch whether additional mortgage lenders enroll in the FICO Preferred Program, since broader adoption would expand the pool of lenders pulling FICO Scores on mortgage applications. Proposed
3. Track whether Rate's stated focus on consistency in assessing risk across conventional, FHA, VA, jumbo, non-QM and home equity line products translates into steadier score usage and revenue for FICO. Analyst inference

Evidence

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