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The credit scoring blind spot – Macroeconomics

In February 2016, about six months after rating a securitization, Moody’s found “faster buildup of delinquencies and charge-offs than expected” in the pool of Prosper loans backing the ABS. Experts …

Credit scoring with an eye to the future

Much has been written about the death of the FICO credit score.  See Wall Street Journal’s “Silicon Valley: We Don’t Trust FICO Scores” and American Banker’s “Will Fintechs Kill the …

When lending to consumers, think local

Who’s a better credit risk for a $15K loan?  A person making $80K a year or a person making $35K?  Most of us would prefer the $80K person – makes …