Risk Scoring - Law Dictionary Search Results
Home Dictionary Name: risk scoringrisk scoring
risk scoring an automated way to analyze a credit report verses a manual review. It takes into account late payments, outstanding debt, credit experience, and number of inquiries in an unbiased manner. Source: U.S. Department of Housing and Urban Development ...
credit score
credit score a score calculated by using a person's credit report to determine the likelihood of a loan being repaid on time. Scores range from about 360 - 840: a lower score meaning a person is a higher risk, while a higher score means that there is less risk. Source: U.S. Department of Housing and Urban Development ...
sub-prime loan
sub-prime loan "B" Loan or "B" paper with FICO scores from 620 - 659. "C" Loan or "C" Paper with FICO scores typically from 580 to 619. An industry term to used to describe loans with less stringent lending and underwriting terms and conditions. Due to the higher risk, sub-prime loans charge higher interest rates and fees. Source: U.S. Department of Housing and Urban Development ...
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