by September 10, 2012,
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
by August 15, 2012,
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
by February 21, 2012,
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
by February 14, 2012,
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
by August 15, 2011,
This installment proposes a new type of mortgage product that could
help to lower current risks of home-price bubbles in various
strongly growing economies—and perhaps future risks in the U.S. and
other countries as well. In booming economies like Brazil, China,
Singapore, and Hong Kong, housing...read more
by July 21, 2011,
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
by June 9, 2011,
The end of 2010 was a transitional time for credit card lenders.
Card issuers were faced with the need to jump-start “return
to growth strategies” as a result of diminished profits stemming
from the great recession and all of the credit tightening actions
deployed over the last two years. ...read more
by June 3, 2011,
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
by May 17, 2011,
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
by March 14, 2011,
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
