FICO is a toll booth on every mortgage, and each per score price hike drops almost fully to the bottom line. At 25x forward with those margins, the market is pricing moat erosion the filings have not confirmed yet.
It all comes down to how much the government will flex here. They could simply cap further price increases to the rate of inflation. Or they could treat them like a Utility and make them file a rate case to prove that their costs have increased and need to raise their price to earn a return on capital
FICO is a toll booth on every mortgage, and each per score price hike drops almost fully to the bottom line. At 25x forward with those margins, the market is pricing moat erosion the filings have not confirmed yet.
It all comes down to how much the government will flex here. They could simply cap further price increases to the rate of inflation. Or they could treat them like a Utility and make them file a rate case to prove that their costs have increased and need to raise their price to earn a return on capital