Question

In: Accounting

Which attributes of a loan application do you think might predict which loans will go delinquent...

Which attributes of a loan application do you think might predict which loans will go delinquent and which will ultimately be fully repaid? How could we test that?

Now consider declined loans application data: Amount requested, application date, loan title, risk score, debt-to-income ratio, and employment length.

  • What three items do you believe would be most useful in predicting loan acceptance or rejection?
  • What additional data do you think could be solicited either internally or externally that would help you predict loan acceptance or rejection?
  • If you were in a position to accept or deny a loan application, how might you look differently at this data? Would you be more lenient or stringent?

Solutions

Expert Solution

Refer to the below image for the above mentioned questions, in a detailed way of explanation.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

For this week's application, think of an organization with which you are familiar. What do you...
For this week's application, think of an organization with which you are familiar. What do you believe this organization's ideal benefits portfolio would be in order to optimize employee recruitment and retention. In a 1-page submission, briefly describe the organization, and then design the voluntary, supplemental, and other benefits that you believe to be the best fit for this organization based on your understanding of its needs and financial abilities. In your submission, be sure to highlight at least two...
For this week's application, think of an organization with which you are familiar. What do you...
For this week's application, think of an organization with which you are familiar. What do you believe this organization's ideal benefits portfolio would be in order to optimize employee recruitment and retention. In a 1-page submission, briefly describe the organization, and then design the voluntary, supplemental, and other benefits that you believe to be the best fit for this organization based on your understanding of its needs and financial abilities. In your submission, be sure to highlight at least two...
Do you think there is a relationship between youth victimization and mental health problems and delinquent...
Do you think there is a relationship between youth victimization and mental health problems and delinquent behavior? Explain. What are the best programs to help victims of crime? Support your answers with evidence
What factors do you think might influence which policy alternative is adopted? How do you think...
What factors do you think might influence which policy alternative is adopted? How do you think policy implementation happens?
Which two of these should you do if your lender rejects your loan application?
 Which two of these should you do if your lender rejects your loan application? Ask your home inspector why Ask your lender why File a dispute with the Fair Credit Agency Shop for a different lender or type of mortgage
do you think there are purposes to which we might put a human being which in...
do you think there are purposes to which we might put a human being which in simply doing them would violate or harm the human being in some fundamental and/or significant way? Why or why not? Would such violations or harms constitute a limit to our purposes? Would such a “limit” obligate us to act in certain ways and avoid other actions
Thinking about the organization that you are working for currently, which enterprise application do you think...
Thinking about the organization that you are working for currently, which enterprise application do you think your organization will benefit from the most: ERP, SCM, CRM, or a combination? Why and how? Explain your answer. If a company wants to implement an enterprise application, it had better do its homework. Discuss the implications of this statement. Case 1: What do you think Hilton leadership should do after the Blackstone acquisition? Should they further invest in CRM or simply maintain the...
Which do you think will be easier to predict: product costs or service costs? Please justify...
Which do you think will be easier to predict: product costs or service costs? Please justify your response.
Do you think the economy is self-regulating? Do you think economies will always go back to...
Do you think the economy is self-regulating? Do you think economies will always go back to its potential as Classical view believes? Briefly discuss.
Do you think the economy is self-regulating? Do you think economies will always go back to...
Do you think the economy is self-regulating? Do you think economies will always go back to its potential as Classical view believes? Briefly discuss.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT