How Can Marginal Effects Help You?

What are marginal effects? In credit decision analyses, marginal effects are a measure of the difference in denial probabilities. For example, suppose the denial probability of a Hispanic applicant was determined to be 66%, but if that same applicant was White, and his/her denial probability was found to be 50%, the marginal effect for the […]

Alternate Credit Scoring Models: FICO vs. Vantage Models

According an article in the Wall Street Journal, on August 13, the Federal Housing Finance Agency (HFHA), which supervises Fannie Mae and Freddie Mac, has sent to the Federal Register for publication a final rule on the validation and approval of third party credit score models that can be used by Fannie and Freddie. When […]

What is a Peer Bank?

What is a peer bank?  A seemingly simple question that has become anything but simple to answer.  Peer banks are a hugely important item that can vastly affect the portrayal of your institution, and thus it is paramount that when you define an institution as a “Peer Bank,” you are identifying the correct organization.  There […]