FICO provider is shaking up its credit score business. Its stock is surging

Fair Isaac , the creator of the FICO score, saw shares rally more than 20% on Thursday after it unveiled a new pricing model that will allow mortgage lenders to bypass credit bureaus for credit scores.
The Montana-based data analytics company said it would license its credit scores directly to mortgage resellers who can then distribute FICO scores directly to borrowers. The FICO score is a U.S. credit scoring system that is used by nearly 90% of lenders to evaluate a borrower’s credit risk. Scores generally range from 300 to 850, with higher scores reflecting lower credit risk.
The pop in Fair Isaac’s stock is its largest percent increase since Nov. 22. Shares are down about 9% this year.
Under the new plan, lenders will have the option of choosing between two pricing models.