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logo
  • Home
  • Apply Now
  • Client Portal
  • Today's Rates
  • Loan Officers
  • Blog
  • Resources
  • Loan Programs
  • Loan Process
  • Mortgage Basics
  • Mortgage Calculators
  • FAQ
  • Testimonials
  • Give Us A Review
  • Careers
  • About Us
  • Contact
  • Company Store
  • (425) 576-5462

How is a credit scoring model developed?

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.

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We've been helping customers afford the home of their dreams for many years and we love what we do.

Company NMLS: 854647
www.nmlsconsumeraccess.org

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4055 Lake Washington Blvd, Ste 100
Kirkland, WA 98033
Phone: (425) 576-5462
hansw@wfmtg.com

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