Senator Calls On DOJ To Investigate FICO's 'Monopoly Power'

Mortgage professionals already grappling with margin compression, market volatility, and regulatory uncertainty now have another growing concern: a steep and steady rise in credit report costs.

In a letter dated April 3, 2025, U.S. Sen. Josh Hawley (R-Mo.), a former state attorney general, renewed his call for the Department of Justice’s Antitrust Division to investigate the Fair Isaac Corporation (FICO) for what he calls “apparently anticompetitive practices.”

Hawley cited FICO’s near-total market dominance holding roughly 90% of the B2B credit scoring market, and recent price hikes that directly affect mortgage originators and, ultimately, borrowers.

FICO is “the only real competitor in the credit scoring market” and “has only continued to increase prices to access its credit scores,” Hawley wrote, adding, “Antitrust scrutiny from your office is warranted.” 

Late last year, FICO raised its credit score fee for mortgage originations from $3.50 to $4.95 — a more than 40% increase. Though that may not seem like much, it’ll add up, and for mortgage originators, it means higher per-loan costs at a time when every dollar counts.

“This is not just a pricing issue,” Hawley noted. “It’s a market power issue.” He criticized what he termed FICO’s “sweetheart deal” with the federal government that effectively makes its scores mandatory for loans backed by multiple government entities, accusing the company of abusing that position for profit.

According to Forbes, FICO’s net income nearly tripled from 2019 to 2024, although its CEO, William Lansing, took home some $35 million in compensation last year — down from $66 million in 2023. Meanwhile, FICO’s stock has skyrocketed more than 455% over the past five years, closing at $1,673.98 as of April 4, 2025, after hitting an all-time high of $2,382.40 in November 2024. 

This isn’t the first time the industry has raised the alarm. In late 2022, the National Consumer Reporting Association warned of “massive” credit reporting increases that would range from 10% to 400%, depending on lender size and pull volume. Those warnings have now become financial realities. 

As the markets have begun pricing in additional interest rate cuts from the Federal Reserve Board this year, there could be a corresponding surge in mortgage activity as rates may drop. Additional costs — sometimes borne by mortgage originators and others by consumers — could lead to less access to credit for borrowers.

If the DOJ acts on Hawley’s request, it could spark the first serious scrutiny of FICO’s market position in decades. But for now, originators are left to absorb the cost of credit reporting or pass it on; either way, it’s a hit to affordability and profitability.