Who is Fair, Isaac and Co.?

Fair, Isaac and Co., now known as FICO, is recognized primarily for developing the credit-scoring software that many lenders use to assess the creditworthiness of borrowers. FICO scores play a crucial role in the lending process, influencing decisions on whether to approve loan applications and what interest rates to offer. This scoring system was designed to provide a standardized way to evaluate credit risk, helping lenders make more informed decisions.

The other options involve roles that are outside the scope of what Fair, Isaac and Co. provides. Insurers of mortgage loans, government agencies related to loan oversight, and credit bureau companies serve distinct functions in the financial landscape. In contrast, the core contribution of Fair, Isaac and Co. is its development of the credit scoring model that revolutionized how credit evaluations are conducted.