Fair Isaac saw a wave of selloffs on Monday that pushed the company to its weakest financial position in over a decade. Shares plummeted 27% in a single day, falling to fresh 3.5 year lows and approaching the largest drawdown in the company's history. The stock is now more than 68% below its all-time high, with valuation levels nearing those seen during the global financial crisis as investors weigh the loss of the company's dominance in the U.S. mortgage market.

The decline follows a Federal Housing Finance Agency move to implement a unified mortgage pricing grid for Fannie Mae and Freddie Mac that places VantageScore alongside Classic FICO. Under the new system, VantageScore borrowers can reach the top pricing band at 780+, removing a previous 20 point disadvantage. This shift provides mortgage lenders with a cheaper alternative to FICO, as VantageScore costs about $0.99 per score compared to roughly $10 for a FICO score.