Hawley Opens Investigation into FICO, Urges FTC to Investigate Company’s Price Hikes

Hawley Opens Investigation into FICO, Urges FTC to Investigate Company's Price Hikes

Monday, March 23, 2026

WASHINGTON - Today, Senator Josh Hawley (R-Mo.) sent a letter to the CEO of Fair Isaac Corporation (FICO), to inform the company of his investigation into FICO's pricing practices in the mortgage credit scoring market. Senator Hawley also wrote to Andrew Ferguson, Chairman of the Federal Trade Commission (FTC), urging his agency to also open an investigation into FICO. FICO's recent price increases are contributing to the problem of housing affordability, particularly for first-time homebuyers. Senator Hawley has previously written to the Department of Justice regarding FICO's anticompetitive practices.

Senator Hawley wrote, "As Chairman of the Senate Judiciary Subcommittee on Crime and as a member of the Subcommittee on Antitrust, Competition Policy, and Consumer Rights, I am investigating Fair Isaac Corporation's pricing practices in the mortgage credit scoring market."

Senator Hawley continued, "FICO dominates the credit scoring market with a product used by 90% of lenders, potentially commanding an even larger market share for first-time home buyers. FICO reinforces that position through its status for decades as the only credit score accepted for conforming mortgage loans sold to Fannie Mae and Freddie Mac, despite the long-delayed promise of another competitor entering the market. Rather than competing on price, FICO has leveraged this market position to impose a pattern of extraordinary price increases."

Senator Hawley concluded, "FICO has suggested that its royalty constitutes a negligible share of overall closing costs. But the relevant question is not whether the charge is small relative to other fees. Instead, we investigate whether the charge is justified by competitive market forces or is instead an exercise of monopoly pricing power. An 88% operating margin and a compound annual growth rate of 100% in per-score pricing over five years are not hallmarks of a competitive market.

Read Senator Hawley's full letter to FICO here.

Senator Hawley sent an additional letter to the Federal Trade Commission, urging the agency to open its own investigation into FICO.

Senator Hawley wrote, "I write to urge the Federal Trade Commission to investigate the pricing practices of the Fair Isaac Corporation (FICO), which holds a dominant position in the business-to-business credit scoring market and has engaged in a pattern of extraordinary price increases that harm American consumers. I have twice called on the Department of Justice Antitrust Division to investigate these practices. The FTC's consumer protection and competition authority make it equally well-positioned to investigate anticompetitive behavior at FICO."

Senator Hawley continued, "For 2026 alone, FICO doubled its per-score price from $4.95 to $10.00-a more than 100% increase for the identical product offered in 2025. This single increase has the potential to raise mortgage credit score costs across the industry by approximately $500 million. These costs are ultimately borne by borrowers. They are especially damaging to first-time homebuyers, who often pay for multiple credit checks across several loan applications before successfully purchasing a home."

Senator Hawley concluded, "These facts warrant scrutiny under the FTC's authority to investigate unfair methods of competition and unfair or deceptive acts or practices. I urge you to open an investigation at the earliest opportunity."

Read Senator Hawley's full letter to the FTC here.

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