BofA Securities downgraded Fair Isaac from Buy to Neutral and cut its price target from $1,400 to $700, citing regulatory changes to mortgage credit scoring. FHFA (U.S. housing finance regulator) eliminated VantageScore 4.0’s previous 20-point pricing adjustment, giving it the same treatment as Classic FICO for mortgages backed by Fannie Mae and Freddie Mac. Fair Isaac shares have fallen approximately 60% in 2026, recently trading near 52-week lows after a 20% premarket drop and nearly 30% erosion over seven sessions. TransUnion’s commitment to price VantageScore 4.0 at $0.99 per mortgage score through December 2028 adds to competitive pressure. FICO retains an 85% gross margin and a 17.8 price-to-earnings ratio, while several analysts continue to rate the stock positively despite uncertainty over pricing power, score volumes and regulatory approval for FICO 10T and the Direct Lender Program.