To develop a model, a creditor selects a random sample of its customers, or a sample of similar customers if their sample is not large enough, and analyzes it statistically to identify characteristics that relate to creditworthiness. Then, each of these factors is assigned a weight based on how strong a predictor it is of who would be a good credit risk. Each creditor may use its own credit scoring model, different scoring models for different types of credit, or a generic model developed by a credit scoring company.
Under the Equal Credit Opportunity Act, a credit scoring system may not use certain characteristics like -- race, sex, marital status, national origin, or religion -- as factors. However, creditors are allowed to use age in properly designed scoring systems. But any scoring system that includes age must give equal treatment to elderly applicants.
Buccaneer Mortgage
Serving All of Your Real Estate Needs
How Much do You Qualify for?
Get Pre Approved Now
Fans of Buccaneer Mortgage
TheGoodPirates Home Loans
BUCCANEER MORTGAGE
TheGoodPirates Home Loans
2101 Vista Parkway
West Palm Beach, FL 33411
Office: (561) 312-7777
Toll Free: (800) 579-9677
Text Direct: (561) 385-0678
Info@thegoodpirates.com
Powered By LenderHomePage.com