Shares of Fair Isaac Corporation, known as FICO, experienced their largest decline since March 2020 following an announcement by federal regulators that government-sponsored enterprises Fannie Mae and Freddie Mac will be permitted to use VantageScore, a rival credit scoring model, in determining borrowers' creditworthiness. VantageScore was established in 2006 by the three major credit bureaus—Equifax, Experian, and TransUnion—as an alternative to the FICO score. The Federal Housing Finance Agency, led by director Bill Pulte, confirmed that lenders may now utilize VantageScore to underwrite home loans for Fannie Mae and Freddie Mac. This regulatory shift has weighed on FICO's stock, which dropped by approximately 7% amid concerns over the company's pricing strategy and modest guidance revisions.