Study: Some Scoring Systems May Lead to Lost Business
April 23, 2001
Certain credit scoring models with weak predictive capabilities may be adversely affecting low- and moderate-income borrowers and causing their lender-users to lose significant business opportunities, according to a new analysis of credit scoring. Substantial anecdotal evidence suggests that credit scoring "may not be a particularly responsive tool for the low- and moderate-income borrower, according to author James Wheaton, associate director of the Chicago-based Neighborhood Housing Services.