> A credit score isn't going to tell you how likely somebody is to make their mortgage. Unless there are really desperate circumstances, most people will pay their mortgage. A middle-of-the-road credit score really doesn't tell you much about how likely somebody is to have desperate circumstances. That makes it a poor predictor.
The above implies that a company that does not use credit scores when making mortgage loans will outperform one that does.
What's the the name of your company that makes mortgage loans and does not use credit scores? More to the point, are you taking investment or borrowing money?
Sorry, I have to keep my online activities and work separate. :-) But I didn't mean to infer my company doesn't use credit scores... They use them plenty.
>The above implies that a company that does not use credit scores when making mortgage loans will outperform one that does.
The point is, while we don't really know how these algorithms work, we know they don't control for the type of loan. You just get one number. That one number is not always meaningful.
The above implies that a company that does not use credit scores when making mortgage loans will outperform one that does.
What's the the name of your company that makes mortgage loans and does not use credit scores? More to the point, are you taking investment or borrowing money?