Credit scores are a critical part of modern underwriting. Although credit scores were initially built only on traditional credit data, newer scoring systems include alternative data and are able to provide scores for more consumers, thus expanding the credit box.
The Federal Housing Finance Agency, as part of its 2015 Conservatorship Scorecard, is requiring the government-sponsored enterprises to assess the feasibility of using alternative credit-score models and credit history in loan-decision models. What data do these alternative credit-score models rely on? What additional borrowers are they able to score, and how accurate are the scores? This talk explored these issues, as well as other emerging issues in credit scoring, including big data and data fiefdoms.
Kenneth Brevoort, section chief, credit information and policy, Consumer Financial Protection Bureau
Sarah Davies, senior vice president, analytics, product management, and research, VantageScore Solutions