Five ways recovery scoring can improve your debt collection operations

For more than 20 years, creditors have been using scores in their lending operations.  They use risk models such as the VantageScore credit score, FICO or others to predict what kind of risk to expect before making credit-granting decisions. Risk models like these do a great job of separating the...read more

Everything you wanted to know about credit risk scores but were afraid to ask

In this three-part series, Everything you wanted to know about credit risk scores, but were afraid to ask, I will provide a high level overview of: What a credit risk score predicts; Common myths about credit risk scores and how to educate consumers; and finally, Scoring traditionally un-scoreable...read more

Where business models worked, and didn’t, and are most needed now in mortgages

  Part II: Where are Models Most Needed Now in Mortgages? (Click here if you missed Part I of this post.) A first important question should always be are all of your models, model uses, and model testing strategies, and your non-model processes, sound and optimal for your business?  But in today’s...read more

Where Business Models Worked, and Didn’t, and Are Most Needed Now in Mortgages

Part I: Types and Complexity of Models, and Unobservable or Omitted Variables or Relationships Since the financial crisis, it’s not unusual to read articles here and there about the “failure of models.” For example, a recent piece in Scientific American critiqued financial model “calibration,”...read more

Now That the CFPB Has Arrived, What’s First on Its Agenda?

It’s here! July 21 marks the official launch of the Consumer Financial Protection Bureau (CFPB). This new government agency gains the power to write and enforce 18 consumer protection laws that guide financial products and services, including the Fair Credit Reporting Act, the Equal Credit...read more

Are You Ready for the CFPB? Three Ways It Will Change Your Business

The Consumer Financial Protection Bureau (CFPB) is a new regulatory agency that is still evolving. But even now it’s clear that it will have unprecedented powers with a broad reach across industries – including communications. Although there are questions about how the CFPB will operate, there are...read more

New Risk-Based Pricing Requirements Bring Relationship-Building Opportunities

The next time a consumer asks about his or her credit score, consider it an opportunity. Recent changes to the Risk-Based Pricing (RBP) rule may provide new opportunities to strengthen relationships by educating consumers about what their credit scores mean, how they’re used, and how they can be...read more

Your Business Is About to Be “Randomized”

Heads up! Change is coming that could have a far-reaching impact on risk-based pricing and the way telecommunications, cable and energy companies do business. Get ready for JuneEffective June 25, 2011, The Social Security Administration (SSA) will be changing the way Social Security Numbers (SSNs)...read more

The Benefits of Bundling

The passage of the Telecommunications Act of 1996 increased competition in the telecom industry. These days, nearly every telecommunications company is offering, or considering offering, bundled services to attract new customers, increase retention of current customers, or both. Every time I turn...read more