FICO Blog

DECEMBER 8, 2022

Assume an auto finance portfolio’s current underwriting risk management strategy requires applicants to have an expected 24-month default rate less than 3%. Figure 1: Auto finance account origination default rates by FICO® Auto Score 8, Oct 13-Oct 15 and Oct 07-Oct 09 versus a theoretical 3% default rate cut-off.

Default 52

Default CECL Credit Risk 52

Abrigo

JANUARY 12, 2016

One of every six financial institutions responding to the 2015 Sageworks Bank & Credit Union Examination Survey said that examiners criticized or required action related to their risk ratings practices. Risk rating practices for the loan portfolio can draw scrutiny from regulators, to be sure.

Credit Unions 60

Credit Unions CECL Credit and Collections Default 60

Abrigo

OCTOBER 23, 2015

Portfolio stress tests can provide a number of benefits beyond compliance with regulatory expectations, Behringer said recently at the 2015 Risk Management Summit hosted by Sageworks. Behringer, McGladrey’s national leader for credit risk services. Stress testing can help identify the risks related to a changing environment.

Credit Unions 60

Credit Unions CECL Default Credit Risk 60