Fair Isaac is losing its grip on the U.S. home loan market as major lenders and federal regulators move to treat rival credit scores as equals. Rocket Mortgage has endorsed a push by Federal Housing Finance Agency Director Bill Pulte to create competition by requiring Fannie Mae and Freddie Mac to use a single Loan Level Price Adjustment grid for both FICO and VantageScore. This shift allows VantageScore borrowers to reach the top pricing band at 780, removing a previous 20 point disadvantage and providing lenders with a cheaper credit scoring alternative.

Fair Isaac shares plunged 27% on Monday, the worst single day decline for the stock since 1989, and it has fallen 64% for the year. Investors are reacting to the potential loss of pricing power, as VantageScore costs approximately $0.99 per score compared to roughly $10 for FICO. The stock is now more than 68% below its all-time high, marking its deepest drawdown in nearly 20 years as its valuation nears global financial crisis levels.