White Papers from Decision Analytics

Today’s small business lending portfolios reflect the improving economy, and differ from those during the recession. This "change is constant" reality explains why portfolio managers must look much more closely at the loans and the behaviors of their small-business owners to help identify fraudulent activity and other problems and, ultimately, to drive profitability and reduce risk. This white paper explores how, through portfolio management, a risk manager can drive profitability, minimize risk and detect fraud.

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The economy’s recovery from the Great Recession may have started slowly, but it is accelerating — and it’s genuine. For credit issuers, now’s the time to look with fresh eyes at your post recession lending strategies. It’s time to rethink your approach to growth in this market and reassess the profile of the consumer prospect in relation to profitability and market share gains.

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Fraud continues to be a genuine threat and challenge. After a sharp and unexplained drop in identity thefts in 2010, fraud schemes climbed 12.6 percent in 2011. This paper explores how to help detect identity theft and other fraud, how data velocity can prove the key to predicting identity theft, and still deliver a strong and quick return on investment.

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In this paper, we will provide a high-level introduction to Basel III regulation and discuss some of its impact on banks and the banking system. We also will present a real business case showing how organizations turn these regulatory challenges into business opportunities by optimizing their credit strategies.

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This whitepaper describes new improvements in local housing market indicators and analytics derived from local-area credit and local real estate information. In the run up to the U.S. housing downturn and financial crisis, perhaps the greatest single risk management shortfall was poorly predicted home prices and borrower home equity.

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Learn more practical insights and best practices for key areas of business banking and to look at the features of a leading-edge approach to customer management.

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The following three papers provide an overview of a recent validation of VantageScore 2.0's performance to measure predictiveness in a variety of contexts and environments.

• Access the report: Affirms Model’s Predictive Power for the Mortgage Industry
• Access the report: Affirms Model’s Predictive Power for the Credit Card Industry
• Access the report: Affirms Model’s Predictive Power for the Auto Finance Industry

VantageScore Solutions, LLC has prepared three white papers containing some of the most basic information about credit scores. In an effort to have this information become broadly known, and help everyone become smarter about credit scores.

• Access the report: Part 1: What’s Behind Credit Scores?
• Access the report: Part 2: An Overview of Ways Lenders Use Credit Scores for Credit Approval
• Access the report: Part 3: Achieving the Same Risk Interpretation from Different Models with Different Ranges

Often referred to as the “Great Recession,” the period between 2008 and 2010 presented an exceptionally challenging environment for U.S. consumers and lenders. In this context, predictive performance of VantageScore ® 2.0—already repeatedly validated in times that were economically less challenging - was tested again in a recent study.

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Home prices have been rising sharply in booming economies, raising fears in each of these countries of a real estate bubble of their own. While various risk offsets exist, there is a strong incentive in each of these nations to continue to take protective measures now to avoid potential hosuing-bubble and burst scenarios like those experienced elsewhere. 

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With demands growing, resources tight and rapid return on investment (ROI) the name of the game, companies must be able to eliminate this diversion and focus fully on the quality and business impact of their decisions. They need a way to connect and streamline how they design decisioning strategies, bring them into production, and measure and learn from the results. The whole process has to become quicker, thoroughly flexible and dynamic. It must be easier and more collaborative for participants and less costly and more rewarding for the enterprise.

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Focus is increasing on detection and management of first party fraud — fraud perpetrated when consumers apply for credit without intending to fulfill their payment obligations. Although first-party fraud rates have stayed fairly level over the past few years, the problem is still significant. This emphasis is driving the need for more standard operational definitions across the industry to improve detection efforts.

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A year late, the United States is beginning to turn the corner to expanded recovery in the consumer credit markets. Yet 2011 promises to be a bumpy year. While lenders cautiously extend credit, delinquencies slow, auto sales climb and general economic conditions improve, the jobless rate remains high for many and the housing market remains unstable. The strategies lenders enacted in 2009 to stem losses and lessen risk still tend to curb loan growth.

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In 2009, the U.S. economy experienced a record drop in consumer borrowing. The contraction in lending has been largely attributed to consumers reducing leverage, or "consumer deleveraging." Experian tracked a sample of credit-active consumers to show that consumer deleveraging has occurred and the demand for credit has declined.

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Experian® analyzed the levels of supply and demand of consumer mortgage credit prior to and after the market meltdown. The increasing rift in consumer behavior between those in the highest credit-quality brackets and those in the lower brackets necessitates a new perspective on the credit-active population that takes into account two or more distinct consumer groups.

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The card lending community is facing increasingly tighter regulations, restrictive lending criteria and continued economic challenges which will continue to impact how the industry does business going forward.

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Experian® has produced a powerful and descriptive portrait of identity fraud victims. This analysis makes it clear that affluent suburbans top the list as the most at-risk consumers.

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Experian created this guide to help you identify, prioritize and implement enhanced decision-making capabilities for improved business performance.

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As lenders consider how to move beyond recession-based management strategies, this study looks at how leveraging methods using VantageScore in conjunction with consumer credit behaviors can effectively identify profitable opportunities.

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This study evaluates the effect of various mortgage programs on consumers’ VantageScore® credit scores, along with other consequences homeowners potentially face if unable to make timely mortgage payments: short sale, foreclosure, or bankruptcy.

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