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  • Comment Detail

  • Date: 03/14/18
    First Name: Nina
    Last Name: Carpenter
    Email: ninacarp7@gmail.com
    Organization Type: state government
    Organization: Housing Authority

  • Comment

    The models are not so different and generally do not reflect significant difference in the final score that would dramatically change the parameters of the loan approval or mortgage insurance premiums. While a credit score can be valuable in determining performance of the loan, it is not as highly predictive when scores range 580-650. These scores are most often in danger of default due to the lack of appropriate underwriting guidelines. We must adjust the debt ratio away from gross income and/or begin to include minimum living standards. The cost of utilities, groceries, gas and health expenses have greatly increased since the automated model was created. These costs are generally 25% of a person's income. This disparity is increasing the risk for default due to lack of disposable income.