DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1541210
5 November 2025 November 2025 » themortgagepoint.com M T E C H FICO INTRODUCES DIRECT LICENSE PROGRAM FOR MORTGAGE LENDING A significant change in how FICO Scores are provided to the mort- gage sector has been disclosed by FICO. Tri-merge resellers can now compute and provide FICO Scores to their clients directly, removing the need for the three national credit bureaus, thanks to the introduction of the FICO Mortgage Direct License Program. For mortgage lenders, mortgage brokers, and other industry participants, this change is designed to lead to increased price transparency and instant cost re- ductions. Businesses can keep using the credit bureaus if they want to do so. FICO is launching two alternative pricing structures to give industry participants more options and flexibility. Based on successful mortgage funding, FICO's new performance model high- lights the importance of the FICO Score in facilitating mortgage liquidity and lowering lender expenses. The FICO Score royalty charge will be $4.95 per score under the new performance mod- el, which is 50% less than the average fees per score paid to tri-merge resellers. This decrease is the result of doing away with credit bureau markups. When a loan with a FICO score is closed, a funded loan charge of $33 per borrower per score will be applied, acknowledging the downstream value of the FICO Score for investors, rating agencies, mortgage insurers, GSEs, and other market players. The financed loan fee allows for widespread adoption by participants in the originating market by replacing fees previously associated with the re-issue of FICO Scores. Strengthening Lender Power As an alternative, lenders can decide to stick with the current per-score only pricing structure, which keeps the average price that credit bureaus used to charge for the FICO Score at $10 per score, which is maintained for the tri- merge resellers. This model is intended to show that lenders will not see an increase in their per-score fees. Tri-merge resellers are empowered by the FICO direct licensing scheme to maximize credit costs for both borrowers and lenders. The direct license program lowers the cost of FICO Scores to the mortgage sector and improves cost trans- parency by simplifying distribution. "Today marks a turning point in how credit scores are delivered and priced across the mortgage industry," said Will Lansing, CEO of FICO. "Direct licensing of the FICO Score brings transparency, competition, and cost-efficiency to the mortgage lending process. This change eliminates unnecessary mark-ups on the FICO Score and puts pricing model choice in the hands of those who use FICO Scores to drive mortgage decisions." Additionally, FICO will provide the three national credit bureaus with the same terms for both FICO mortgage score pricing models; however, FICO has no control over whatever markups the bu- reaus may apply in respective channels. PHH MORTGAGE INTRODUCES NON- QM PRODUCT LINE O nity Group Inc.'s subsidiary, PHH Mortgage, has declared that it anticipates launching a new line of proprietary non-qualified mortgage (non-QM) products called FlexIQ. For both delegated and non-del- egated loans, the product suite will be accessible via the company's correspon- dent lending channel. "We designed FlexIQ with our clients' needs in mind, offering them an easier, streamlined process and a flex- ible product suite to meet the growing demand for non-QM products," said Rich Bradfield, EVP and Chief Growth Officer. "We are excited to launch Flex- IQ, which underscores our commitment to being a trusted partner by continuing to provide value-added products to our clients and the customers they serve." FlexIQ offers flexible underwriting and intelligent mortgage solutions in the following three product categories: • Full Documentation (Full Doc): Designed for borrowers who are seeking loan limits above traditional Agency standards. • Alternative Documentation (Alt Doc): Designed for nontraditional income profiles for borrowers who require alternative methods to docu- ment their income. • Debt Service Coverage Ratio (DSCR): Designed for real estate investors who are seeking to qualify based on rental income compared to monthly housing expenses. "FlexIQ is our new proprietary product with a service-first approach that includes a single standard for underwriting across multiple product types, a dedicated support desk, and necessary training, as well as other helpful resources," added Andy Peach, EVP and Chief Lending Officer. "We anticipate that FlexIQ will serve as a cornerstone in ex- panding our non-agency product offerings to help our clients grow their business." LOANCARE ADDS NEW FEATURES TO IMPROVE ITS DIGITAL RETENTION PLATFORM T wo new additions to LoanCare's range of digital retention solutions will help clients obtain vital infor- mation on loan payoffs and provide them with more customer refinance signals.