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ATLANTA - Equifax (NYSE:EFX), the $29.47 billion market cap credit reporting giant with impressive gross profit margins of 56.66%, announced Tuesday it will price VantageScore 4.0 mortgage credit scores at $4.50 through the end of 2027, more than 50% below FICO’s planned 2026 price of $10. According to InvestingPro analysis, Equifax maintains a FAIR financial health score, with 12+ detailed insights available to subscribers.
The credit reporting agency, which has demonstrated steady revenue growth of 6.86% over the last twelve months, will also provide free VantageScore 4.0 credit scores to all its mortgage, automotive, card, and consumer finance customers who purchase FICO scores through the end of 2026.
This move comes in response to what Equifax called "FICO’s monopoly-like doubling of their mortgage credit score prices" and follows the Federal Housing Finance Agency’s July decision to end FICO’s 30-year scoring monopoly in the mortgage industry.
"The best way to drive change in the marketplace, and to lower costs for consumers and our customers, is through open competition," said Mark W. Begor, Equifax Chief Executive Officer, in the press release.
VantageScore 4.0 incorporates trended data and alternative information including rental, utilities, and telecommunications payment histories. According to Equifax, these deeper insights have demonstrated a 20% increase in originations without adding additional risk.
Equifax also announced it will provide The Work Number Report Indicator and additional alternative data alongside its mortgage credit report at no additional cost. Free income and employment indicators will be available with Equifax credit reports for automotive, card, and consumer finance sectors in 2026.
The company stated VantageScore 4.0 can score 33 million more U.S. adults compared to traditional credit scoring models by incorporating alternative data not historically included in credit reports.
Equifax is the only nationwide consumer reporting agency currently providing telecom, pay TV, and utilities data alongside tri-merge credit reports for the mortgage market at no additional cost to lenders.
In other recent news, Equifax announced its Board of Directors declared a quarterly dividend of $0.50 per share, continuing its long-standing tradition of over 100 consecutive years of dividend payments. Citi has lowered its price target for Equifax to $290, citing concerns over mortgage volume and adjusting its earnings and EBITDA forecasts for 2025. Similarly, BMO Capital reduced its price target to $260, despite acknowledging strong performance in Equifax’s Employer Workforce Solutions and U.S. Information Solutions segments. UBS also adjusted its price target to $278, noting a mixed outlook due to third-quarter guidance and foreign exchange impacts on the 2025 outlook, despite a second-quarter earnings beat. Meanwhile, Seaport Global Securities initiated coverage of Equifax with a Neutral rating, highlighting its significant role in the mortgage market and income and employment verification services. These developments reflect the varied perspectives of analysts on Equifax’s future performance and market conditions.
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