FICO’s Mortgage License Program to be ‘significantly beneficial’, says Needham

Needham keeps a Buy rating and $1,950 price target on FICO (FICO), saying the company’s announced launch of FICO Mortgage Direct License Program – a new pricing and distribution initiative which will give tri-merge credit report resellers the option to distribute FICO Scores directly to lenders – will be “significantly beneficial”. The program is a “creative way” for FICO to significantly increase the company’s unit economics on mortgage pulls while also allowing the FHFA to claim a “win” for consumers, as end credit score costs for consumers are likely to be stable in 2026, the analyst tells investors in a research note.