Credit-scoring giant Fair Isaac Corp slumps following FHFA director Bill Pulte's comments

Shares of credit-scoring giant Fair Isaac Corp FICO.N drop 8.6% to $1,548, hitting a nine-month low

Stock down for the fifth straight session, its sharpest drawdown since 2020

"Still not happy with FICO. We should be making some decisions on all related items in next 1-3 weeks" - Bill Pulte, director, U.S. Federal Housing Agency (FHFA), in response to a post on rising cost of mortgage on social media platform X.com

According to Jefferies, stock's slide began after Pulte at a conference on May 20 said, "I think FICO should make sure they're being as economical as possible. We're actively looking at getting it done."

The slump was based on investors' concerns that regulators will begin to more closely scrutinize mortgage costs, Jefferies analysts said in a note last week

Businesses use FICO scores to weigh risks involving consumer transactions that might include a new loan or credit card, renting an apartment, or access to lower insurance rates

In February, FICO reported a 25% jump in Q2 profit, helped by growth in its scores segment

FICO top loser on S&P 500 .SPX by 12:38 p.m. ET, taking its YTD losses to about 15%, compared to 0.5% for the S&P 500 .SPX