How can banks offer such low rates?

by John P. Robertson, Senior Business Process Specialist As a Senior Business Process Specialist for the Experian Decision Analytics, John provides guidance to clients in the areas of profitability strategies for risk based pricing and relationship profitability. He assists banks in developing more

The impact of the revived HELOC trend

  Residential real estate lending was the leading component of the Great Recession of 2007-2009.  Could it happen again?  Let’s analyze our Intelliview data  to see where U.S. lending trends are headed with HELOCs. A large portion of Home Equity Lines of Credit (HELOCs) were originated from more

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 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 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’ 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,” 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 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 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 more