New Predictive Analytics for Measuring Consumer Capacity for Incremental Credit

Size: px
Start display at page:

Download "New Predictive Analytics for Measuring Consumer Capacity for Incremental Credit"

Transcription

1 white paper New Predictive Analytics for Measuring Consumer Capacity for Incremental Credit July 29»» Executive Summary More clearly understanding a consumer s capacity to safely take on the incremental debt they are seeking is a challenge all lenders face every day when reviewing credit applications and managing existing customers. This is especially true in mortgage lending, where past approval practices placed many consumers into loan terms that they simply could not afford to sustain, driving the higher loss rates currently being experienced. Traditionally, lending practices include the use of income-based measures, such as debt-to-income ratios, to gauge a consumer s ability to handle incremental debt. Income information itself, however, has limitations in reflecting consumer capacity. Questions include the accuracy of the income field, the predictive implications of gross income relative to disposable income, and other sources of variation such as region and cost of living. What s missing in today s lending practice is the ability to answer effectively, with or without access to income information, Who can safely manage additional debt? While important to all types of lending, this question is particularly critical in both mortgage origination and servicing decisions such as refinance and loan modification. The FICO Credit Capacity Index (CCI), based on a patent-pending technology, represents an anticipatory risk measure that rank-orders consumers based on their ability to manage new or increased debt safely on top of their existing debt loads. In this paper, we discuss FICO s approach to measuring consumer capacity, share studies on recent mortgage loans and present ideas on how mortgage lenders and servicers can benefit from incorporating capacity measures into their portfolio loss mitigation and growth strategies. Make every decision count TM

2 »» Overview Understanding a consumer s ability to take on incremental debt has become increasingly important in today s lending market. Lenders are striving to address over-indebtedness and rising delinquency levels. Lenders who manage this dynamic successfully will improve profitability and help consumers gain access to credit they can manage. Historically, lenders have relied primarily upon consumer credit risk measures and debt-to-income ratios as a means of regulating how much additional credit they believed a consumer could handle. FICO Scores are designed to rank-order future risk based on past behavior, but are not designed to foresee changes in a consumer s credit picture that could have incremental implications for that consumer s overall risk. On margin to risk scores, income measures and measures based on income such as debt-to-income ratio (DTI) are used extensively as a proxy for capacity to drive decisions around mortgage loan approval, in combination with risk scores. Traditional sources of income data, while often verified during application, are rarely updated, making it a less reliable measure for mortgage servicing decisions. Even when income is verified, it does not account for discretionary income relative to cost of living. For example, the same income won t stretch as far for someone living in San Francisco compared to Little Rock. Moreover, one s lifestyle is a strong determinant in disposable income: holding income constant, consumers who eat at restaurants every night can afford less incremental debt than consumers who routinely eat soup. While income-based measures augment lender strategies, stronger measures of capacity would provide a more complete picture of consumer credit risk. With risk scores to measure risk and an appraisal process to measure collateral, a capacity measure along with income will provide a more detailed measure of the three C s of mortgage decision making: Credit, Collateral and Capacity. FICO s pioneering research and validations in the US (and internationally) have demonstrated that credit bureau information can be successfully used to generate an anticipatory risk measure that identifies consumers who are most likely to manage additional credit safely. Moreover, credit bureau information is verified, mitigating concerns regarding consumer reported capacity, and readily available for incorporation into automated underwriting and servicing decision systems. The FICO CCI is now available to help lenders make more profitable and safer lending decisions. Optimized to be used in conjunction with FICO Scores and other underwriting and servicing dimensions, FICO CCI can enable lenders to better target prospects who can more safely take on incremental debt and to more optimally set initial credit product terms, as well as refine existing loan terms and refinance existing mortgages into appropriate new loan terms.»» Measuring Capacity The FICO Credit Capacity Index The FICO CCI was developed using advanced FICO technology to rank-order future risk based on indebtedness actions not yet taken. It has proven to be effective for new credit, such as a new credit card or loan, as well as for increased indebtedness on existing accounts, such as a credit increase on an existing card and a higher mortgage payment as result of an ARM reset or a refinance. Our research demonstrates that, when holding risk constant, consumers identified with a lower capacity for taking on future additional debt are more likely to default with new or increased credit obligations compared to consumers identified as having a higher capacity for incremental debt. Moreover, low capacity individuals identified by FICO CCI can handle relatively small increases in incremental debt, but become significantly riskier following relatively large increases in incremental debt. Identified high-capacity individuals can handle substantially more incremental debt with less change in their overall riskiness. In sum, FICO CCI further segments consumers with similar FICO 211 Fair Isaac Corporation. All rights reserved. page 2

3 Figure 1: Theoretical Consumer Capacity Concept At a Given Risk Score BAD RATE ( % ) Scores based on their ability to manage incremental debt safely, thereby providing lenders with a more comprehensive view of the consumer s future performance on the credit product offering. Figure 1 illustrates the notion that some consumers have greater capacity for additional debt than others, with each line representing a consumer with a different capacity to handle incremental debt. The theoretical consumers on this chart have similar FICO Scores at time of scoring with the same default probability of 2%, given no change to their indebtedness in the future (the far left on the graph). However, while these consumers have Figure 2: FICO CCI Validation Results Demonstrating FICO CCI Rank Orders within a FICO Score Band for Increased Installment Loan Payment MORTGAGE BAD RATE ( % ) Harry Low Capacity Mary Mid Capacity Larry High Capacity INCREMENTAL DEBT ( $ ) Consumers have at least one open mortgage as of Oct 6 Bad definition (9 days delinquent or worse on mortgages between Oct 6 and Oct 8) CCI CCI 5 CCI 1 CCI FICO Score CCI 2 CCI 7 CCI 3 CCI 8 CCI 4 CCI 9 INCREMENTAL INSTALLMENT LOAN PAYMENTS (BETWEEN OCT 6 AND OCT 7) ( $ ) similar default probability when all else is held equal, they have different capacity to handle additional debt taken on over time, which affects their future risk, as illustrated by three curves of the increasing bad rates (the y-axis) as balances increase (along the x-axis). Note that everyone has a point at which excessive debt results in default. Thus, it is important to remember that using a capacity measure to render credit extension decisions will not preclude even the highest-capacity consumers from default if pushed too far. This theoretical concept has been replicated on independent validation data to show that FICO CCI, used in conjunction with a FICO Score, is able to separate these differing profiles with respect to capacity. FICO CCI is a rank-ordering tool with which higher scores indicate higher capacity when associated with incremental debt defined as lower expected risk (9 days delinquent or worse) over 24 months after the scoring date. Figure 2 is a part of a recent validation that illustrates how the FICO CCI is able to distinguish consumers who can safely take on incremental installment debt compared to those who cannot in a given FICO Score range. The population shown represents a group of mortgage accounts pooled across multiple lenders. The graph shows consumers with a similar risk profile (FICO Score in the range) and who all have at least one mortgage open as of October 26 (FICO score and FICO CCI score generated/appended to sample). Along the x-axis, we listed the Incremental Installment Loan Payments (including mortgages) that these consumers experienced between October 6 and October 7. The increase in installment loan payments reflect new 211 Fair Isaac Corporation. All rights reserved. page 3

4 Figure 3: FICO CCI Validation Results Demonstrating CCI Rank Orders within Each of Four FICO Bands for Increased Total Installment Loan Payment Mortgage Bad Rate ( % ) Mortgage Bad Rate ( % ) Consumers have at least one open mortgage as of Oct 6 Bad definition (9 days delinquent or worse on mortgages between Oct 6 and Oct 8) CCI 3 CCI 4 6 CCI CCI 3 CCI 4-6 CCI 7 8 CCI FICO Score FICO Score installment loan(s) opened, an increase in monthly payments on existing installment loan accounts, or both. The y-axis indicates the consumers performance on mortgage loans over 24 months after the scoring date. Note the range of results at different levels of FICO CCI. Those who were low capacity (yellow, blue and green lines at the top of the graph) become much more risky as a function of incremental debt, while those with higher capacity levels (purple, pink and red lines at the bottom of the graph) were less affected by the incremental debt. Similar results (see Figure 3) were found for various FICO score ranges such that, when used in conjunction with the FICO score, FICO CCI successfully distinguishes between those who safely managed their incremental installment loan debt and those who did not. Mortgage Bad Rate ( % ) Mortgage Bad Rate ( % ) CCI 3 CCI 4-6 CCI 7 8 CCI FICO Score CCI 3 CCI 4-6 CCI 7 8 CCI FICO Score INCREMENTAL INSTALLMENT LOAN PAYMENTS (BETWEEN OCT 6 AND OCT 7) ( $ ) 211 Fair Isaac Corporation. All rights reserved. page 4

5 »» Using the FICO Credit Capacity Index in Mortgage Lending Decisions Taking this concept to an implementation level, how would a mortgage lender or servicer make use of the FICO CCI in their risk management and credit extension decisions? In general, when considering how to employ the FICO CCI, lenders should use this new risk measure in conjunction with existing decision criteria such as FICO Scores, verified income and other applicant data, and loan term information. The FICO CCI can serve as a key part of a holistic mortgage lending strategy to answer the question, How likely is this consumer to handle this loan amount safely in addition to their existing debt load? CCI can add value within both mortgage servicing and mortgage origination decision areas. Origination Decisions In mortgage originations, the FICO CCI can be incorporated into existing underwriting strategies, providing new insight into the applicant s credit capacity not otherwise captured. The FICO CCI can be used to help determine initial loan pre-qualification, approve/decline decision, appropriate loan amount, required down payment and risk-based interest rate offering. An example of a FICO CCI use case in originations is illustrated in Figure 4. For ease of reading, we have kept the sample strategy below somewhat basic, to demonstrate how a mortgage lender could leverage the FICO CCI within an origination s strategy. Consumers with very low FICO Scores and high DTIs who would not put down substantial down payments (resulting in high LTVs) would continue to be declined (same as current strategy). Consumers with very high FICO Scores, low DTIs and sizable down payments would continue to be courted with competitive rates. However, the remaining areas would be evaluated to further differentiate treatment based on the FICO CCI. Segments with low CCI scores, higher down payments should be requested to lower the monthly mortgage debt burden. Segments with high CCI scores, lower down payments with higher payment amounts can be considered. 211 Fair Isaac Corporation. All rights reserved. page 5

6 Figure 4: Using FICO CCI in Practice Simplified New Mortgage Origination Strategy Low Moderate High Very Low Decline Low Moderate Request Higher Down Payment Standard Origination Procedure Request Lower Down Payment High Very High Accept with Competitive Rate FICO CREDIT CAPACITY INDEX TM Servicing Decisions Given current challenges with the declining value of mortgage portfolios, many mortgage entities have shifted focus to loss mitigation efforts on existing mortgages. Foreclosure prevention has become a top goal of lenders and government-initiated mortgage recovery activities. The FICO CCI can be used in proactive loss mitigation efforts by helping to predict consumers at greater risk of mortgage default and potential foreclosure effectively due to an increase in debt burden (i.e., an increase in mortgage monthly payment). Leveraging this analytic will help servicers target potential delinquencies and begin the loss mitigation process earlier to increase strategy efficacy and yield. A segmentation tree using the FICO Mortgage Score 1 and the FICO CCI for targeting mortgage default is illustrated in Figure 5. The segmentation scheme can be used in conjunction with the Home Affordability and Stability Plan (HASP) rules to further segment the mortgage loans by differing probabilities of default risk. The example shows that among all current loans not addressed by HASP (DTI < 31%, LTV > 5%, conforming), a small fraction of the segment captured by low FICO CCI and low FICO Mortgage Score is extremely risky. With no loss mitigation actions taken, the default rate is over 16% in this segment when measured over a six-month period. Compare that to the 6% default rate observed in the medium risk segment and the 1% default rate in the low risk segment measured over the same six-month period. Using CCI in conjunction with FICO Mortgage Score in a simplified segmentation tree, a servicer could more accurately identify higher risk loans from each segment of their servicing population to take immediate action before it is too late to prevent foreclosure. Lenders can use this approach to prioritize limited resources and time by directing the highest risk segments to the loss mitigation department while directing the rest less risky accounts to customer service centers for more traditional refinance options The FICO Mortgage Score is a new score specifically designed to help mortgage lenders make the best possible risk decisions when addressing both current mortgage holders and those aspiring to own a home. By leveraging the power of the base FICO Score, which was developed and tuned to all trades in a consumer s credit file, the FICO Mortgage Score is specifically fine tuned for the mortgage industry by focusing on those mortgage-related trades. This new score offers predictive improvements for mortgage risk of as much as 25% in certain population segments compared to the base FICO. 211 Fair Isaac Corporation. All rights reserved. page 6

7 Figure 5: Targeting Imminent Mortgage Default a simplified segmentation scheme using the FICO Mortgage Score and FICO CCI Rules for Segment 1: Not HASP eligible Current, first-lien, conforming, LTV > 5, front-end DTI < 31% Segment 1 Not HASP Eligible High Risk Segment Segmentation Rule: MIO Low or CCI Low Medium Risk Segment Segmentation Rule: MIO Medium or MIO Low and CCI Medium Low Risk Segment Segmentation Rule: MIO High or MIO Medium and CCI High Bad Rate: 16% Average $ Bad: $47,245 Bad Rate: 6% Average $ Bad: $18,951 Bad Rate: 1% Average $ Bad: $3,172 The FICO CCI can also be used in mortgage refinance decisions to assist lenders in determining appropriate new loan terms. A strategy using FICO CCI in conjunction with other existing inputs in refinance decisions can be developed in such a way that is similar to the strategy shown in Figure 4 for origination decisions.»» Value of the FICO Credit Capacity Index in Mortgage Lending More Control Over Loss Exposure and Reserves: Using the FICO CCI in conjunction with existing mortgage lending strategies allows lenders to refine loan origination policies to reallocate loss exposure toward those consumers best able to repay debt and limit exposure when consumers pose a higher risk of default. Such reallocation or reduction in exposure might allow lenders to reduce their loss reserves and reallocate working capital to more profitable areas of business. Improve Portfolio Profitability: When used in conjunction with existing strategies, the Credit Capacity Index should allow lenders to better avoid loss exposure on new mortgage accounts. It should also enable them to mitigate losses on existing customers by offering better informed loan modification or refinance terms that correspond to the amount that the customer can safely handle. Demonstrate Responsible Lending Practice: Proactive management of consumer debt loads would help address consumer groups and legislative pressures regarding agreed, standardized, documented work practices specifically aimed at reducing or better managing consumer over-indebtedness. 211 Fair Isaac Corporation. All rights reserved. page 7

8 »» Summary Today s lending challenges call for a new approach to address consumers capacity to handle new and existing mortgage loans. The Credit Capacity Index, now available from FICO, is based on a patentpending technology, which unlike traditional bureau-based risk modeling, can isolate consumer sensitivity to new debt not currently present on the credit report and infer a consumer s capability to handle incremental future debt. FICO research reinforces the added predictive value of the Credit Capacity Index when used with FICO Scores. Validation results for both new and existing mortgage accounts show that the Credit Capacity Index effectively rank-orders consumers most likely to be affected by incremental debt within each FICO Score range those who, without a change in debt, would have a similar expected risk of default. The Credit Capacity Index, like the FICO score, is an objective risk measure designed to comply with the Fair Credit Reporting Act (FCRA) and meet the consumer and legislative fairness test. Based solely on credit repayment history, it is recommended to be applied equally across all consumer segments and is fully compliant with the FCRA. The FICO Credit Capacity Index offers mortgage lenders a major advantage by adding a new dimension to risk assessment for a more complete picture of consumer creditworthiness. 211 Fair Isaac Corporation. All rights reserved. page 8

9 about FICO FICO (NYSE:FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company s groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO s innovative solutions include the FICO Score the standard measure of consumer credit risk in the United States along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world s top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through Learn more at FICO: Make every decision count. FICO, Credit Capacity Index and Make every decision count are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners Fair Isaac Corporation. All rights reserved. 2581WP 4/11 PDF For more information US toll-free International web ()

Summary. January 2013»» white paper

Summary. January 2013»» white paper white paper A New Perspective on Small Business Growth with Scoring Understanding Scoring s Complementary Role and Value in Supporting Small Business Financing Decisions January 2013»» Summary In the ongoing

More information

Managing Credit Line Increase Strategies with Opt-In Requirements

Managing Credit Line Increase Strategies with Opt-In Requirements white paper Managing Credit Line Increase Strategies with Opt-In Requirements FICO has used client engagements to build opt-in requirements into our Credit Line Management Optimization methodology. We

More information

Loss Forecasting Methodologies Approaches to Successful Risk Management

Loss Forecasting Methodologies Approaches to Successful Risk Management white paper Loss Forecasting Methodologies Approaches to Successful Risk Management March 2009 Executive Summary The ability to accurately forecast risk can have tremendous benefits to an organization.

More information

confident lending and other risk-based decisions

confident lending and other risk-based decisions CONSUMER INFORMATION SOLUTIONS Decision 360 > Delivers a true 360 consumer financial view for confident lending and other risk-based decisions When it comes to consumer credit, the more you know, the more

More information

Homeownership Preservation Policy for Residential Mortgage Assets. Section 110 of the Emergency Economic Stabilization Act (EESA)

Homeownership Preservation Policy for Residential Mortgage Assets. Section 110 of the Emergency Economic Stabilization Act (EESA) Homeownership Preservation Policy for Residential Mortgage Assets Section 110 of the Emergency Economic Stabilization Act (EESA) requires that each Federal property manager that holds, owns, or controls

More information

FICOTM. Consumer Credit Risk North America Trends and Expectations FOURTH QUARTER 2013

FICOTM. Consumer Credit Risk North America Trends and Expectations FOURTH QUARTER 2013 Consumer Credit Risk North America Trends and Expectations FOURTH QUARTER 2013 A Survey by the Professional Risk Managers International Association January 2014 w w w. P R M I A. o r g PRMIA thanks our

More information

The future of credit card underwriting. Understanding the new normal

The future of credit card underwriting. Understanding the new normal The future of credit card underwriting Understanding the new normal The card lending community is facing a new normal a world of increasingly tighter regulation, restrictive lending criteria and continued

More information

To Score or Not to Score?

To Score or Not to Score? To Score or Not to Score? Research explores the minimum amount of data required to build accurate, reliable credit scores Number 70 September 2013 According to studies by the Federal Reserve 1 and others,

More information

UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor

UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor Most studies about consumer debt have only focused on credit cards and mortgages. However, personal debt also may include medical expenses, school

More information

Mortgage Terms Glossary

Mortgage Terms Glossary Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see

More information

Statement of the Fair, Isaac and Company Inc. To the Office of Financial and Insurance Services. 2002 Public Hearings

Statement of the Fair, Isaac and Company Inc. To the Office of Financial and Insurance Services. 2002 Public Hearings Statement of the Fair, Isaac and Company Inc. To the Office of Financial and Insurance Services 2002 Public Hearings Fair, Isaac is a global provider of custom analytics and decision technology. Widely

More information

Restore Mortgage Confidence. Rebuild the industry with information, insight and communication

Restore Mortgage Confidence. Rebuild the industry with information, insight and communication FICO Mortgage Solutions Restore Mortgage Confidence Rebuild the industry with information, insight and communication In this business climate, the banks that most effectively mitigate risk in across their

More information

SCORES OVERVIEW. TransUnion Scores

SCORES OVERVIEW. TransUnion Scores S OVERVIEW Scores 1 Table of Contents CreditVision Scores CreditVision Account Management Score.... 2 CreditVision Auto Score....3 CreditVision Bankruptcy Score....3 CreditVision HELOC Score....4 CreditVision

More information

American Securitization Forum. Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans

American Securitization Forum. Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans Executive Summary December 6, 2007 Scope: This streamlined framework applies to all first lien

More information

FICO Credit-Based Insurance Scores

FICO Credit-Based Insurance Scores 1. Most consumers benefit from the use of insurance scores Lower premiums In its July 2007 report, Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance, the Federal Trade Commission

More information

Optimizing Trade-Offs for Strategic Portfolio Management

Optimizing Trade-Offs for Strategic Portfolio Management Optimizing Trade-Offs for Strategic Portfolio Management How Basel II analytics could drive risk-adjusted portfolio strategies Number 4 April 2008 The solutions FICO is exploring would provide mathematically

More information

Equity Default Insurance

Equity Default Insurance Equity Default Insurance Increase your loan volume while mitigating your risk Expand lending opportunities without the risk Eligible Loan Types Include: Closed-End Seconds Home Equity Lines of Equity Default

More information

Understanding Your FICO Score. Understanding FICO Scores

Understanding Your FICO Score. Understanding FICO Scores Understanding Your FICO Score Understanding FICO Scores 2013 Fair Isaac Corporation. All rights reserved. 1 August 2013 Table of Contents Introduction to Credit Scoring 1 What s in Your Credit Reports

More information

Uncovering More Insurance Fraud with Predictive Analytics Strategies for Improving Results and Reducing Losses

Uncovering More Insurance Fraud with Predictive Analytics Strategies for Improving Results and Reducing Losses white paper Uncovering More Insurance Fraud with Predictive Analytics Strategies for Improving Results and Reducing Losses April 2012 Summary Predictive analytics are a powerful tool for detecting more

More information

FICOTM. Consumer Credit Risk North America Trends and Expectations FIRST QUARTER 2014

FICOTM. Consumer Credit Risk North America Trends and Expectations FIRST QUARTER 2014 Consumer Credit Risk North America Trends and Expectations FIRST QUARTER 2014 A Survey by the Professional Risk Managers International Association March 2014 w w w. P R M I A. o r g PRMIA thanks our survey

More information

Trust But Verify. What Research Reveals About Subprime Vehicle Loan Performance when The Work Number Data is Used

Trust But Verify. What Research Reveals About Subprime Vehicle Loan Performance when The Work Number Data is Used Trust But Verify What Research Reveals About Subprime Vehicle Loan Performance when The Work Number Data is Used Trust but verify. In case you are not old enough to remember, these were words that President

More information

Loan Consolidation. Mark Riggs

Loan Consolidation. Mark Riggs Loan Consolidation Mark Riggs Bedford Springs, October 12-14, 2015 Introduction Today's students are graduating with loan balances as large as a home mortgage, but unlike a mortgage, student debt is typically

More information

Residential Mortgage Underwriting Guideline

Residential Mortgage Underwriting Guideline Residential Mortgage Underwriting Guideline BC CREDIT UNIONS JANUARY 2015 www.fic.gov.bc.ca INTRODUCTION The Residential Mortgage Underwriting Guideline (guideline) outlines the Financial Institutions

More information

Accelerate Performance in the New Era of Health Care. Innovate, adapt and grow

Accelerate Performance in the New Era of Health Care. Innovate, adapt and grow FICO Health care Solutions Accelerate Performance in the New Era of Health Care Innovate, adapt and grow The marketplace was requiring us to be more competitive to offer better electronic solutions to

More information

Answering the Three Biggest Questions About Waste in Health Care Payments Payer Organizations Turn to Predictive Analytics

Answering the Three Biggest Questions About Waste in Health Care Payments Payer Organizations Turn to Predictive Analytics white paper Answering the Three Biggest Questions About Waste in Health Care Payments Payer Organizations Turn to Predictive Analytics December 2012»» Summary My special investigations unit keeps an eye

More information

Building Ability to Pay -Compliant Growth Strategies

Building Ability to Pay -Compliant Growth Strategies Building Ability to Pay -Compliant Growth Strategies The CARD Act s income provision poses a lasting challenge for issuers to comply without sacrificing profit goals Number 68 June 2013 The Credit Card

More information

Tom Aliff Vice President, Modeling and Analytics Martin O Connor Senior Vice President, Global Analytics

Tom Aliff Vice President, Modeling and Analytics Martin O Connor Senior Vice President, Global Analytics Credit scores don t tell the entire story for car buyers A new approach to the 3 C s offers a deeper, more accurate view of risk for subprime auto lending Tom Aliff Vice President, Modeling and Analytics

More information

Alternative Data and Fair Lending

Alternative Data and Fair Lending White Paper 81% of historically underserved minority customers that are unscorable using traditional credit bureau scores are scorable using alternative data. August 2013 By Jeffrey Feinstein, PhD Table

More information

Understanding Your FICO Score

Understanding Your FICO Score Understanding Your FICO Score 2013 Fair Isaac Corporation. All rights reserved. 1 August 2013 Table of Contents Introduction to Credit Scoring 1 What s in Your Credit Report 1 Checking Your Credit Report

More information

RE: Interagency Advance Notice of Proposed Rulemaking: Procedures to Enhance the

RE: Interagency Advance Notice of Proposed Rulemaking: Procedures to Enhance the Fair Isaac Corporation 901 Marquette Avenue, Suite 3200 Minneapolis, MN 55402 + 1 612 758 5200 phone + 1 800 999 2955 US toll free www.fairisaac.com Robert E. Feldman, Executive Secretary Attention: Comments/Legal

More information

An industry snapshot finds leading US issuers exploring new ways to manage the bottom-line impacts of regulation

An industry snapshot finds leading US issuers exploring new ways to manage the bottom-line impacts of regulation How Are Issuers Changing Course Under the CARD Act? An industry snapshot finds leading US issuers exploring new ways to manage the bottom-line impacts of regulation Number 42 August 2010 Inside: Find out

More information

Unlocking Small Business Lending Profitability. Balance Risk, Cost and Compliance

Unlocking Small Business Lending Profitability. Balance Risk, Cost and Compliance Unlocking Small Business Lending Profitability Balance Risk, Cost and Compliance Small and medium enterprise (SME) lending is challenging. The challenge: Smaller loan/lease amounts aren t profitable enough

More information

Gain superior agility and efficiencies with enterprise origination solution. Finacle Origination

Gain superior agility and efficiencies with enterprise origination solution. Finacle Origination Finacle Origination Gain superior agility and efficiencies with enterprise origination solution The recent global financial meltdown has reshaped the landscape of the lending business around the world.

More information

Business Intelligence and Big Data Analytics: Speeding the Cycle from Insights to Action Four Steps to More Profitable Customer Engagement

Business Intelligence and Big Data Analytics: Speeding the Cycle from Insights to Action Four Steps to More Profitable Customer Engagement white paper Business Intelligence and Big Data Analytics: Speeding the Cycle from Insights to Action Four Steps to More Profitable Customer Engagement»» Summary For business intelligence analysts the era

More information

GLOSSARY COMMONLY USED REAL ESTATE TERMS

GLOSSARY COMMONLY USED REAL ESTATE TERMS GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These

More information

Acquiring customers profitably. With Credit Bureau Scores

Acquiring customers profitably. With Credit Bureau Scores Acquiring customers profitably With Credit Bureau Scores Uncover the true face of new customers before it s too late In the current climate, characterized by tough competition and economic slowdowns, identifying

More information

FICO Score Factors Guide

FICO Score Factors Guide Key score factors explain the top factors that affected your FICO Score. The order in which your FICO Score factors are listed is important. The first indicates the area that most affected your FICO Score

More information

2014 Survey of Credit Underwriting Practices

2014 Survey of Credit Underwriting Practices 2014 Survey of Credit Underwriting Practices Office of the Comptroller of the Currency Washington, D.C. December 2014 Contents Introduction... 1 Part I: Overall Results... 3 Primary Findings... 3 Commentary

More information

Understanding Your Credit Score

Understanding Your Credit Score Understanding Your Credit Score Prof. Michael Staten Director, Take Charge America Institute Norton School of Family and Consumer Sciences FEFE Conference, Baltimore, MD April 30, 2010 A Good Credit Score

More information

CFPB issues ability-to-repay and qualified mortgage rules

CFPB issues ability-to-repay and qualified mortgage rules 1 FEBRUARY 4, 2013 CFPB issues ability-to-repay and qualified mortgage rules By Raymond J. Gustini, Lloyd H. Spencer, Tiana M. Butcher, Courtney L. Lindsay II, and Pierce Han No standard is perfect, but

More information

Share Loan and Underlying Mortgage Financing. Jeremy Morgan, NCB Larry Mathe, NCB

Share Loan and Underlying Mortgage Financing. Jeremy Morgan, NCB Larry Mathe, NCB Share Loan and Underlying Mortgage Financing Jeremy Morgan, NCB Larry Mathe, NCB About NCB NCB is the premier lender to housing cooperatives nationwide. NCB has financed over $6 Billion to housing cooperatives

More information

Controlling Risk in Mortgage Originations Using VantageScore

Controlling Risk in Mortgage Originations Using VantageScore Controlling Risk in Mortgage Originations Using VantageScore November 2008 The New Standard in Credit Scoring EXECUTIVE SUMMARY Consumer credit scores play an integral role in identifying consumer risk

More information

Making Home Affordable Program: FHA s Home Affordable Modification Loss Mitigation Option. Mortgagee Letter , page 1

Making Home Affordable Program: FHA s Home Affordable Modification Loss Mitigation Option. Mortgagee Letter , page 1 Making Home Affordable Program: FHA s Home Affordable Modification Loss Mitigation Option Mortgagee Letter 2009-23, page 1 Basic Program Guidelines FHA-Home Affordable Modification Program (FHA-HAMP) FHA-HAMP

More information

High-Performance Scorecards. Best practices to build a winning formula every time

High-Performance Scorecards. Best practices to build a winning formula every time High-Performance Scorecards Best practices to build a winning formula every time Will your team win or lose? Scorecards drive financial decision making For decades, your organization has used the predictive

More information

Understanding Your Credit Score

Understanding Your Credit Score Understanding Your Credit Score Contents Your Credit Score A Vital Part of Your Credit Health...... 1 How Credit Scoring Helps You........ 2 Your Credit Report The Basis of Your Score............. 4 How

More information

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another. MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default

More information

Cooperative Housing/ Share Loan Financing. Larry Mathe Chris Goettke National Cooperative Bank

Cooperative Housing/ Share Loan Financing. Larry Mathe Chris Goettke National Cooperative Bank Cooperative Housing/ Share Loan Financing Larry Mathe Chris Goettke National Cooperative Bank The NCB Story NCB delivers banking and financial services to cooperative organizations complemented by a special

More information

DNBi Risk Management. Use Unparalleled Data to Boost Performance

DNBi Risk Management. Use Unparalleled Data to Boost Performance DNBi Risk Management Use Unparalleled Data to Boost Performance DNBi is a powerful, web-based credit risk management solution delivering D&B s world-class data and robust predictive analytics. DNBi s intuitive,

More information

Validating a Credit Score Model in Conjunction with Additional Underwriting Criteria September 2012

Validating a Credit Score Model in Conjunction with Additional Underwriting Criteria September 2012 Validating a Credit Score Model in Conjunction with Additional Underwriting Criteria September 2012 INTRODUCTION Model validation is a critical activity to verify that credit scorecards are working as

More information

Build Deposits Profitably and Grow Customer Relationships. Manage the deposit base with proven analytics

Build Deposits Profitably and Grow Customer Relationships. Manage the deposit base with proven analytics FICO Deposit Solutions Build Deposits Profitably and Grow Customer Relationships Manage the deposit base with proven analytics The future will witness aggressive competition to win deposit accounts. To

More information

DNBi Risk Management. Unparalleled Data Insight to Drive Profitable Growth. Insights from Data. Relationships from Insights

DNBi Risk Management. Unparalleled Data Insight to Drive Profitable Growth. Insights from Data. Relationships from Insights DNBi Risk Management Unparalleled Data Insight to Drive Profitable Growth Insights from Data Relationships from Insights DNBi is a powerful, web-based credit risk management solution that offers Dun &

More information

African Bank Investments Limited Strategies to grow in the mass market

African Bank Investments Limited Strategies to grow in the mass market African Bank Investments Limited Strategies to grow in the mass market June 2007 Presentation agenda Who we are Our target market A transforming business Is this a good time to be in this market? Outlook

More information

How Much Is US Credit Behavior Changing?

How Much Is US Credit Behavior Changing? How Much Is US Credit Behavior Changing? New FICO research provides answers and points to opportunities Number 56 November 2011 In recent years, industry and media perception of US consumer credit behavior

More information

Citi U.S. Mortgage Lending Data and Servicing Foreclosure Prevention Efforts

Citi U.S. Mortgage Lending Data and Servicing Foreclosure Prevention Efforts Citi U.S. Mortgage Lending Data and Servicing Foreclosure Prevention Efforts Third Quarter 28 EXECUTIVE SUMMARY In February 28, we published our initial data report on Citi s U.S. mortgage lending businesses,

More information

CREDIT SCORE USER GUIDE

CREDIT SCORE USER GUIDE Page 1 of 11 ABOUT EQUIFAX Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial

More information

COMPREHENSIVE LOAN MODIFICATION PROGRAM

COMPREHENSIVE LOAN MODIFICATION PROGRAM I. Definitions. COMPREHENSIVE LOAN MODIFICATION PROGRAM a) Residential mortgage loan shall mean any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or

More information

HOME AFFORDABLE MODIFICATION PROGRAM BASE NET PRESENT VALUE (NPV) MODEL SPECIFICATIONS

HOME AFFORDABLE MODIFICATION PROGRAM BASE NET PRESENT VALUE (NPV) MODEL SPECIFICATIONS Overview HOME AFFORDABLE MODIFICATION PROGRAM BASE NET PRESENT VALUE (NPV) MODEL SPECIFICATIONS As a part of the Making Home Affordable Program, we are providing standardized guidance and a base net present

More information

WHITEPAPER. Complying with the Red Flag Rules and FACT Act Address Discrepancy Rules

WHITEPAPER. Complying with the Red Flag Rules and FACT Act Address Discrepancy Rules WHITEPAPER Complying with the Red Flag Rules and FACT Act Address Discrepancy Rules May 2008 2 Table of Contents Introduction 3 ID Analytics for Compliance and the Red Flag Rules 4 Comparison with Alternative

More information

A Guide to Mortgage Products. A Glossary of Lending Terms and. True. Know Before You Go...To Get A Mortgage. False. Federal Reserve Bank of Boston

A Guide to Mortgage Products. A Glossary of Lending Terms and. True. Know Before You Go...To Get A Mortgage. False. Federal Reserve Bank of Boston A Guide to Mortgage Products A Glossary of Lending Terms and True Know Before You Go...To Get A Mortgage False or? Federal Reserve Bank of Boston The purpose of this guide is to provide general mortgage

More information

Strategy management systems for collections. White paper

Strategy management systems for collections. White paper Strategy management systems for collections White paper Introduction to strategy management A strategy management solution for debt collections offers the potential for significantly improving operational

More information

Credit Scoring and Its Role In Lending A Guide for the Mortgage Professional

Credit Scoring and Its Role In Lending A Guide for the Mortgage Professional Credit Scoring and Its Role In Lending A Guide for the Mortgage Professional How To Improve an Applicant's Credit Score There is no magic to improving an applicant's credit score. Credit scores automatically

More information

The new revenue cycle imperative: A data-driven approach to minimizing risk and optimizing performance

The new revenue cycle imperative: A data-driven approach to minimizing risk and optimizing performance The new revenue cycle imperative: A data-driven approach to minimizing risk and optimizing performance An Experian Healthcare white paper Shifting reimbursement, evolving payment models and growing regulatory

More information

CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS

CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION

More information

Fair Credit Reporting Act (as amended in 1996): Adverse Action Notices

Fair Credit Reporting Act (as amended in 1996): Adverse Action Notices NAA/NMHC Guidance: Using Consumer Credit Reports in the Rental Screening Process Adverse Action, Risk-Based Pricing and Credit Score Disclosure Obligations The Fair Credit Reporting Act (FCRA) was enacted

More information

The GSEs Are Helping to Stabilize an Unstable Mortgage Market

The GSEs Are Helping to Stabilize an Unstable Mortgage Market Update on the Single-Family Credit Guarantee Business Rick Padilla Director, Corporate Relations & Housing Outreach The Changing Economy: The New Community Lending Environment June 1, 29 The GSEs Are Helping

More information

CREDIT REPORTS WHAT EVERY CONSUMER SHOULD KNOW ABOUT MORTGAGE EQUITY P A R T N E R S

CREDIT REPORTS WHAT EVERY CONSUMER SHOULD KNOW ABOUT MORTGAGE EQUITY P A R T N E R S F WHAT EVERY CONSUMER SHOULD KNOW ABOUT CREDIT REPORTS MORTGAGE EQUITY P A R T N E R S Your Leaders in Lending B The information contained herein is for informational purposes only. The algorithymes and

More information

FSB invites feedback on residential mortgage underwriting practices

FSB invites feedback on residential mortgage underwriting practices Press release Press enquiries: Basel +41 76 350 8430 Press.service@bis.org Ref no: 38/2010 20 September 2010 FSB invites feedback on residential mortgage underwriting practices The Financial Stability

More information

CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS

CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION

More information

Credit Scorecards for SME Finance The Process of Improving Risk Measurement and Management

Credit Scorecards for SME Finance The Process of Improving Risk Measurement and Management Credit Scorecards for SME Finance The Process of Improving Risk Measurement and Management April 2009 By Dean Caire, CFA Most of the literature on credit scoring discusses the various modelling techniques

More information

Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM

Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM Prepared By: Empire Justice Center Kevin Purcell and Salah Maker The Telesca Center for Justice One West Main Street, Suite 200 Rochester,

More information

Converting information to intelligence. Current trends in mitigating small-business risk through analytics

Converting information to intelligence. Current trends in mitigating small-business risk through analytics Converting information to intelligence Current trends in mitigating small-business risk through analytics Converting information to intelligence Executive summary Although general economic conditions

More information

How Mobile Communications Can Improve Collections

How Mobile Communications Can Improve Collections How Mobile Communications Can Improve Collections Mobile applications and SMS can boost customer repayments at a lower cost than traditional contact methods Number 58 March 2012 According to a report from

More information

ALERTS NOTIFICATION USER GUIDE

ALERTS NOTIFICATION USER GUIDE Page 1 of 10 ABOUT EQUIFAX ALERTS NOTIFICATION USER GUIDE Equifax Canada Inc. Box 190 Jean Talon Station Montreal, Quebec H1S 2Z2 Equifax empowers businesses and consumers with information they can trust.

More information

Origination Insight Report

Origination Insight Report Origination Insight Report DECEMBER 2014 INTRODUCTION The Ellie Mae Origination Insight Report provides monthly data and insights from a robust sampling of closed loan applications that flow through Ellie

More information

A Presentation On the State of the Real Estate Crisis 1/30/2009

A Presentation On the State of the Real Estate Crisis 1/30/2009 A Presentation On the State of the Real Estate Crisis 1/30/2009 Presented by Mike Anderson, CRMS President, Essential Mortgage, a Latter & Blum Realtors Company Immediate past president/legislative Chair

More information

HOME BUYING101 TM %*'9 [[[ EPXEREJGY SVK i

HOME BUYING101 TM %*'9 [[[ EPXEREJGY SVK i HOME BUYING101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

More information

Interest Only Expiry. July 2013

Interest Only Expiry. July 2013 Interest Only Expiry July 213 Regulation on Interest Only Regulation requires residential borrowers to amortise within 3 years even if the loan to value ratio is below the regulatory maximum of 8 percent

More information

Business Information Services. Product overview

Business Information Services. Product overview Business Information Services Product overview Capabilities Quality data with an approach you can count on every step of the way Gain the distinctive edge you need to make better decisions throughout the

More information

Refinancing may be an option for you to consider if your loan is adjusting to an interest rate that's higher than the current market rates.

Refinancing may be an option for you to consider if your loan is adjusting to an interest rate that's higher than the current market rates. How does an adjustable rate mortgage (ARM) work? Like many homebuyers, you may have been attracted to the low initial interest rate of an adjustable-rate mortgage (ARM). While adjustable-rate mortgages

More information

HOW PREDICTIVE ANALYTICS DRIVES PROFITABILITY IN ASSET FINANCE

HOW PREDICTIVE ANALYTICS DRIVES PROFITABILITY IN ASSET FINANCE HOW PREDICTIVE ANALYTICS DRIVES PROFITABILITY IN ASSET FINANCE By Janet Orrick, Analytic Scientist at International Decision Systems EXECUTIvE SUMMARY In today s ever-changing business world, asset finance

More information

New Regulations and Mortgage Document Management: What it Means for Mortgage Servicers

New Regulations and Mortgage Document Management: What it Means for Mortgage Servicers New Regulations and Mortgage Document Management: What it Means for Mortgage Servicers CT Representation Services New Regulations and Mortgage Document Management: What it Means for Mortgage Servicers

More information

Navigating Bankruptcy Risk in the Age of New Legislation. Equifax Predictive Sciences White Paper

Navigating Bankruptcy Risk in the Age of New Legislation. Equifax Predictive Sciences White Paper Navigating Bankruptcy Risk in the Age of New Legislation Equifax Predictive Sciences White Paper October 2005 This white paper takes an in-depth look at recent bankruptcy trends, highlights major new requirements

More information

Consumer Lending - implications of new comprehensive credit reporting

Consumer Lending - implications of new comprehensive credit reporting Australia is about to introduce a new form of consumer credit reporting which will bring it into line with most OECD countries. There have been many studies presented about the benefits of Comprehensive

More information

Compliance. Quality. Efficiency. Origination Insight Report

Compliance. Quality. Efficiency. Origination Insight Report Origination Insight Report FEBRUARY 2015 INTRODUCTION The Ellie Mae Origination Insight Report provides monthly data and insights from a robust sampling of closed loan applications that flow through Ellie

More information

A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance.

A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance. A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance. When you agree to a mortgage, you enter into a legal

More information

Appendix D: Questions and Answers Section 120. Questions and Answers on Risk Weighting 1-to-4 Family Residential Mortgage Loans

Appendix D: Questions and Answers Section 120. Questions and Answers on Risk Weighting 1-to-4 Family Residential Mortgage Loans Questions and Answers on Risk Weighting 1-to-4 Family Residential Mortgage Loans 1. When do 1-to-4 family residential mortgages receive 100% risk weight? Any 1-to-4 family residential mortgage loan that

More information

Mortgage Lending Basics

Mortgage Lending Basics Welcome to PMI s On Demand Training Bootcamp Mortgage Lending Basics PRESENTED BY PMI MORTGAGE INSURANCE CO. Introduction to Mortgage Lending Course Overview Mortgage Lending Basics Origination Process

More information

6Six Ways Undisclosed

6Six Ways Undisclosed Mortgage Fraud Mitigation Buyers Guide 6Six Ways Undisclosed Debt Monitoring Can Help Increase Your ROI Expert Summary Undisclosed debt has been identified as one of the leading causes of mortgage fraud

More information

6/18/2015. Sources of Funds for Residential Mortgages

6/18/2015. Sources of Funds for Residential Mortgages Sources of Funds for Residential Mortgages McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 11-2 11-3 11-4 Formerly backbone of home mortgage finance Dominated mortgage

More information

Making Home Affordable: New Challenges, New Tools

Making Home Affordable: New Challenges, New Tools Making Home Affordable: New Challenges, New Tools Todd Hempstead Senior Vice President, Single-Family Mortgage Business Fannie Mae June 2009 1 What I ll cover today Challenges facing our communities Fannie

More information

Securitizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer

Securitizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer Securitizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer Fannie Mae recently announced plans to securitize single-family, fixed-rate reperforming loans (RPLs) into Agency

More information

WBA Overview of New Homebuyer Credit and Recent Government Loan Programs. First-Time Home Buyer Tax Credit

WBA Overview of New Homebuyer Credit and Recent Government Loan Programs. First-Time Home Buyer Tax Credit WBA Overview of New Homebuyer Credit and Recent Government Loan Programs First-Time Home Buyer Tax Credit Additional Resources: www.federalhousingtaxcredit.com/2009 http://www.irs.gov/newsroom/article/0,,id=202222,00.html

More information

Data Quality for BASEL II

Data Quality for BASEL II Data Quality for BASEL II Meeting the demand for transparent, correct and repeatable data process controls Harte-Hanks Trillium Software www.trilliumsoftware.com Corporate Headquarters + 1 (978) 436-8900

More information

Questions and Answers for Borrowers about the. Homeowner Affordability and Stability Plan

Questions and Answers for Borrowers about the. Homeowner Affordability and Stability Plan Questions and Answers for Borrowers about the Homeowner Affordability and Stability Plan Borrowers Who Are Current on Their Mortgage Are Asking: 1. What help is available for borrowers who stay current

More information

Small Business Summit 2011. www.cba.co.za

Small Business Summit 2011. www.cba.co.za Small Business Summit 2011 THE BUSINESS OF CREDIT BUREAUX AND SMMEs REALITY Credit built into modern economic infrastructures Responsible access to credit dependent on sound risk and affordability assessment

More information

HOME BUYING101. 701.255.0042 www.capcu.org i

HOME BUYING101. 701.255.0042 www.capcu.org i HOME BUYING101 701.255.0042 www.capcu.org i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended,

More information

Experian s UK Credit Bureau Scores. Version 1.6

Experian s UK Credit Bureau Scores. Version 1.6 Experian s UK Credit Bureau Scores Version 1.6 January 2014 About Experian Decision Analytics Experian Decision Analytics enterprise-wide solutions combine data intelligence, predictive analytics, decisionenabling

More information

STATISTICA. Financial Institutions. Case Study: Credit Scoring. and

STATISTICA. Financial Institutions. Case Study: Credit Scoring. and Financial Institutions and STATISTICA Case Study: Credit Scoring STATISTICA Solutions for Business Intelligence, Data Mining, Quality Control, and Web-based Analytics Table of Contents INTRODUCTION: WHAT

More information

Understanding Fixed Income

Understanding Fixed Income Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding

More information

Existing Account Management: Building Effective Portfolio Management Tools May 2011

Existing Account Management: Building Effective Portfolio Management Tools May 2011 Existing Account Management: Building Effective Portfolio Management Tools May 2011 OVERVIEW In some ways, portfolio risk management is as much an art as it is a science. Taking place in a dynamic economic

More information