Senator Hawley asks Justice Department to investigate FICO

Senator Josh Hawley sent a letter to the Department of Justice, Antitrust Division, asking for an investigation into FICO. The letter reads in part, “The Fair Isaac Corporation appears to be using its monopolistic power over the credit scoring market to increase costs for mortgage lenders – an increase that will be passed on to consumers. FICO’s recent actions demand that you investigate the company for these anticompetitive practices. The credit score market is dominated by FICO, a for-profit company operated under a sweetheart deal from the federal government. FICO’s credit scores are required for loans originated with government entities such as the Federal Housing Administration and Department of Veterans Affairs. This means that most home buyers are forced to obtain their mortgage from a lender who uses FICO’s services…Accordingly, I urge you to investigate FICO’s potentially anticompetitive practices at the earliest opportunity.”