Nov
11
2012

Validating a model used with overlay criteria

When validating a model in the presence of overlay criteria, it is important to remember that any metrics computed at the aggregate portfolio level will not be indicative of the model’s true performance. While traditional validation methodologies and portfolio metrics may provide directional insight into model performance, the overlay strategy is an additional variable that must be accounted for in each step of the validation analysis. An effective validation should include:

  • Establishment of an appropriate base line
  • Piece-wise validation of overlay segments
  • An overlay strategy analysis

Do you have model validation questions? Learn more and transform your business goals with Experian’s Analytical Consulting Services.

Source: Read the latest VantageScore Solutions white paper: Validating a Credit Score Model in Conjunction with Additional Underwriting Criteria..

VantageScore® is owned by VantageScore Solutions, LLC.


  1. No comments yet.

  1. No trackbacks yet.