Fair Isaac stock continues to whipsaw, falling 8% in premarket trading

Stock in Fair Isaac Corp. ( FICO ) posted another big swing in premarket trading on Friday, dropping 8% after jumping 11% a day earlier.

The stock has been on a swooping ride this week after the Federal Housing Finance Agency introduced competition for FICO Score's longstanding advantage in the nation's mortgage market.

The latest catalyst: a Bloomberg report that the finance agency plans to direct Fannie Mae and Freddie Mac to require lenders to pull credit data from two major credit reporting bureaus rather than three.

FICO has long held an advantage in the nation's mortgage market, but FHFA Director Bill Pulte is working to broaden the playing field. He earlier announced changes that place VantageScore and FICO on the same mortgage pricing grid, sending the stock plunging more than 20% on Tuesday.

In an X post on Tuesday , Pulte described the move as a way to simplify mortgage pricing. He later wrote that he had spoken with Fair Isaac CEO Will Lansing and reiterated that FICO Scores are "approved on our end."

"We do not care who wins — we just want them and Vantage to compete — not be a cartel or abusive monopolies," Pulte wrote.

The stock briefly bounced back despite a downgrade from Bank of America analysts . Bank of America halved FICO's price target to $700 from $1,400 and downgraded it to Neutral from Buy.

The analysts wrote that "the revised grid adds another risk to score volumes, pricing, and market share."

Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.