Credit scoring is already widely used for consumer lending and is becoming more commonly used in mortgage lending. Now, small business lending is getting into the scoring act. What does this mean for the commercial loan industry? And will it benefit small businesses? In this article, Loretta...

Credit scoring has brought increased efficiency in the mortgage lending industry. It has also raised concerns about fair mortgage lending practices given the increasing use of credit scores in the underwriting process. In order to better understand the potential impact of credit scoring on...

The rise of predatory lending practices has put increasing pressure on lenders to oversee the practices of their third-party mortgage brokers. A lawyer, regulator, consumer advocate, and retired Department of Justice counselor share their perspectives on the subject.

While many perceive a dark side to the use of overrides in the mortgage underwriting process, Stanley Longhofer of Wichita State University disagrees. This article concludes the five-part series on credit scoring and fair mortgage lending.

Companies are beginning to use alternative credit data in a variety of ways for the purposes of making credit decisions. This article looks at the prospective benefits of using the new data, examines the potential usefulness of various sources of alternative data, and offers some considerations...

Mortgage originators use credit score cutoff rules to determine how carefully to screen loan applicants. Recent research has hypothesized that these cutoff rules result from a securitization rule of thumb. Under this theory, an observed jump in defaults at the cutoff would imply that...

This paper introduces a measure of credit score performance that abstracts from the influence of “situational factors.” Using this measure, we study the role and effectiveness of credit scoring that underlied subprime securities during the mortgage boom of 2000-2006. Parametric and...