Fair Isaac Corp.’s shares surged in Thursday morning trading after the US data analytics company said it would license its credit scores directly to mortgage resellers, raising concerns of margin pressure for major credit bureaus.

Shares of Experian, Equifax and TransUnion tumbled on fears that the move could curtail the intermediary role of the credit reporting companies.

FICO score, created by Fair Isaac, is a US credit scoring system used by nearly 90% of lenders to evaluate a borrower’s creditworthiness. 4

The higher the number, the lower the risk of default.

Fair Isaac said direct access to FICO scores for lenders and mortgage resellers would increase competition and bring price transparency.

“This new distribution model will allow lenders to avoid paying the current about 1

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