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Brace yourselves: FICO just pulled a plot twist in the mortgage world. On October 1, 2025, the company unveiled the FICO® Mortgage Direct License Program, giving mortgage lenders and resellers the option to skip the middleman—the three major credit bureaus—altogether, and tap FICO’s scores directly.
The goal? Cut costs, sharpen transparency and shift more control into the hands of lenders and, eventually, borrowers.
Cutting Costs, Boosting Clarity
Historically, when a lender wanted a FICO score, they bought it from a credit bureau (Equifax, Experian or TransUnion), which added its own markup. However, under the new program, tri-merge resellers that traditionally combine the three bureaus’ data may compute FICO Scores in-house and distribute them directly. That means fewer layers and fewer markups.
To make the change palatable, FICO is offering two pricing models:
- Performance Model: $4.95 per score plus a $33 fee when the mortgage is funded. This model is meant to align lenders’ payments more closely with the outcome.
- Traditional Flat-Fee Model: A simple $10 per score, effectively mirroring what the bureaus have historically charged.
FICO says removing the added margins from the bureaus could slash per-score costs by as much as 50%. While lenders can still work the old way through the bureaus, this option gives them choice—and likely pressure to price more competitively.
In other words, mortgage scoring just became a little leaner, a little more direct and possibly more transparent.
Why This Matters to You
You might ask: “I’m just a borrower. Why should I care about how FICO prices its score?” Here are a few reasons:
- Potential savings passed down: If mortgage costs drop overall, that could mean more favorable pricing for borrowers.
- Less distortion in the system: Straight pricing means fewer hidden “service” fees baked into lending.
- Competition and innovation: Bypassing the bureaus could accelerate credit data infrastructure.
Still, your FICO Score and credit profile remain front and center in mortgage underwriting. Whether the path is via bureau or direct license, lenders will continue scrutinizing payment history, debt load, credit mix and other factors. No matter how FICO routes its scores, you should be watching your credit.
Credit Monitoring Matters: Which Services Are Smart Bets?
Credit monitoring services act as early-warning systems. They scan credit reports, alert you when something suspicious shifts and often include identity theft protection and remediation support.
Experian IdentityWorksSM
This is Experian’s identity protection service that goes beyond just looking at your credit file. You get alerts when something suspicious happens—like new credit inquiries or changes to your Experian report—and it also scans the dark web and other sources for your personal data.
If your identity is compromised, IdentityWorks brings in specialists to help you restore it. Higher tiers include perks like full three-bureau monitoring, credit locking tools and up to $1 million in identity theft insurance.
Identity Guard
Identity Guard offers a layered defense against identity theft. The most advanced “Ultra” plan includes full three-bureau credit monitoring, alerts for suspicious financial moves, home title changes and even social media activity.
It also includes tools like browser protection, risk scoring and robust fraud resolution services if something goes wrong. All plans come with $1 million in identity theft insurance, and they offer family options to cover multiple members under one umbrella.
Bottom Line
FICO just turned the mortgage scoring battleground into a leaner, more cost-conscious arena. But in the end, your credit, and how closely you guard it, is still the star of the show. Stay alert, stay informed and let your credit defenses adapt right alongside the industry.
