FICO

NOVEMBER 15, 2017

Original module design inspired by Sternberg et al. 2013) and Morrison et al. Initial module design and estimate elicitations from Weber (2007), Weber et al (2013), and Meier and Sprenger (2010).). Most of the time traits are not measured in just one exercise within the EFL credit assessment but in many across the assessment.

Credit Risk 80

Credit Risk Risk Assessments Financial Inclusion 80

FICO

MARCH 15, 2018

Origination Scores Offer Targeted Insight. Origination scores add significant value above and beyond the FICO ® Score, which is based solely on the data found in a consumer’s credit bureau file. There can be nuanced differences in the risk patterns and trends for this population relative to those of the holistic customer (i.e.,

Origination 40

Origination Risk Underwriting AI 40

FICO

MAY 17, 2019

Many of us remember 2013 when the FBI announced that they had dismantled a major criminal ring committing credit card fraud. Address the continuum of credit risk and fraud. Credit risk, fraud, and yes – I’ll say it – AML compliance areas must work together, with shared technology, to fight the problem.

FBI 75

FBI Credit Risk Identity Theft Law Enforcement 75

FICO

OCTOBER 19, 2022

In contrast, both new and existing borrowers in 2013 had historically low sensitivity levels, following years of conservative post-recession lending and borrowing. Figure 2: Average FICO® Resilience Index 2 by snapshot, all industries account management vs account origination. FICO® Resilience Index trends by FICO® Score band.

Origination 52

Origination Accounts Correspondent Credit Risk 52

FICO

DECEMBER 8, 2022

FICO® Scores, often an important contributor to underwriting risk management strategies, are designed to provide valuable risk rank-ordering through all economic cycles. Assume an auto finance portfolio’s current underwriting risk management strategy requires applicants to have an expected 24-month default rate less than 3%.

Addressing 52

Addressing Risk Underwriting Risk Management 52

FICO

MAY 25, 2021

As seen in Figure 1, in the unstressed economy of 2013-15, this would have aligned with a simple FICO® Score cut-off of 660 or higher. One framework we recommend incorporates a two-layered risk appetite statement in the following form: We will accept applicants with expected default rates less than X% and stressed default rates less than Y%.

Risk 52

Risk Addressing Underwriting Economy 52

PYMNTS

DECEMBER 10, 2016

In one sense, from the point of view of 2013, Laplanche was right to be excited for where Lending Club was headed — it still had some very good times coming up. When all the shares were accounted for, Lending Club’s original IPO managed to pull in more than $1 billion — slightly beating expectations and making it the seventeenth-largest U.S.

Non-Bank 73

Non-Bank Compliance Push-to-Card Origination 73