We’ve been saying this forever, but it’s nice when others agree.
According to recent studies by the Mortgage Bankers Association and the Urban Institute, US credit is restricted by “tight” scoring standards that leave tens of millions of potentially creditworthy citizens without access to credit. Old models of credit scoring employed by lending institutions such as Freddie Mac and the Federal Housing Administration ignore more sophisticated approval processes that result from state-of-the-art technology and big data.
“It’s a major undertaking,” says Debra Still, president and chief executive of Pulte Financial Services. But it’s one that requires careful consideration of the technology and data that help us make smarter financial decisions than any prior generation could ever dream.
You can read the rest of Ms. Still’s fascinating op-ed here.