As part of its expanded guidance, the Office of the Comptroller of the Currency explicitly recommends that financial services firms utilizing predictive models and decision analytics run regular validations to gauge model efficacy.
The VantageScore® credit score model was recently measured against the best credit score models from each of the three largest credit reporting companies (CRCs). When comparing KS values, there is exceptionally strong performance for mortgage originations, with the VantageScore® credit score model outperforming the CRC models in a range from 8 percent to 12 percent. The average range of outperformance is 3 percent to 4 percent across the board for most of the key industries.
View the VantageScore® Webinar: Executing Effective Validations in 2011 and Beyond.
Source: Executing Effective Validations, American Banker.
VantageScore® is owned by VantageScore Solutions, LLC.
