America's No. 1 mortgage lender now pulls a rival score on every loan, and FICO calls it loyalty
United Wholesale Mortgage will now pull FICO Scores and VantageScore 4.0 on every credit file and automatically use whichever number is best for the borrower. FICO answered with a paid release calling it a reaffirmation, on a day that also brought an unconfirmed report of 15% job cuts.
Vincent Jiang · 2 min read
The best score now wins by default
United Wholesale Mortgage, the nation's number one mortgage lender, said Tuesday it will obtain FICO Scores and VantageScore 4.0 on every credit pull and automatically use whichever number is best for the borrower: lowest payment, cheaper mortgage insurance, lower all-in fees 14. FICO's response, issued the same afternoon as a paid press release, was to call the move a reaffirmation of commitment to FICO Scores 2. CEO Mat Ishbia's framing was blunter: "No one should have to worry about which credit model wins" 4. The three-digit number that has priced American credit since 1989 6 just became a second opinion.
One borrower in four already scores better
The policy scales a shift already measurable in UWM's pipeline: about a quarter of borrowers got a more favorable result under VantageScore 4.0 than under Classic FICO, a share UWM expected to reach two in five by the end of September 5. Fannie Mae and Freddie Mac opened the rival model to all approved lenders on September 9, after an April rollout to roughly 50 lenders 56. HousingWire reads UWM's move as a counter to Rocket's VantageScore-first policy 8.
FICO's exhibit is a paid press release
The release's claims: FICO Scores are used by 90% of top U.S. lenders; FICO is "the only independent analytics provider" with known performance through a full economic cycle; and the 10T Free Access Program supplies FICO Score 10T alongside Classic at no additional fee 2. Free is a striking price for a score whose per-pull cost has climbed sharply in recent years 6.
The margin being defended
Fair Isaac's filings explain the urgency. Operating margin rose from 43.4% in the September 2024 quarter to a peak of 58.2% in March 2026, and revenue growth hit 38.7% that quarter 7.
The moat, priced: FICO's operating margin rose ten points in eight quarters
Data
| Operating margin | |
|---|---|
| Q3 '24 | 43.4% |
| Q4 '24 | 40.8% |
| Q1 '25 | 49.3% |
| Q2 '25 | 48.9% |
| Q3 '25 | 46% |
| Q4 '25 | 45.7% |
| Q1 '26 | 58.2% |
| Q2 '26 | 53.8% |
The same day, prediction-market operator Polymarket posted that FICO plans to eliminate about 15% of its workforce as it integrates AI more deeply into product development 3. The figure appears in no company statement or major outlet; it remains unconfirmed.
Washington holds the last word
The FHA starts accepting VantageScore 4.0 and FICO Score 10T on January 1, 2027, and FHFA Director Bill Pulte is weighing two-bureau and even single-report credit pulls 56. The counterpoint is real: Pivot Financial's analysis found VantageScore 4.0 can make loans materially costlier over the life of the loan, and a 750 FICO "is not the same as a 750 VantageScore," its CEO said 8. Tuesday's tape still sided with the incumbent: FICO closed up 0.85% while UWM traded down almost 7% 24.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
