Shares of Fair Isaac fell on Tuesday after Bill Pulte, the director of the Federal Housing Finance Agency, said mortgage pricing will be simplified and that the new structure will incorporate a direct competitor to Fair Isaac's FICO score.
Fair Isaac stock dropped more than 13% to $728.63 in premarket trading on Tuesday after ending Monday down 2.6%.
Investors were selling Fair Isaac stock after Pulte posted on social media late Monday that the agency was simplifying mortgage pricing and that Fannie Mae and Freddie Mac were moving to a single pricing grid from the previous two.
Pulte, importantly, added that the new pricing grid structure will incorporate VantageScore, a direct competitor to the FICO score.
"Fannie and Freddie are hereby moving to one pricing grid with VantageScore joining the existing FICO Classic pricing grid," Pulte said in a post to X.