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Template-Type: ReDIF-Paper 1.0
Title: Credit score thresholds as a source of inefficiency in lending processes
Author-Name: Inozemtsev Eduard
Author-Name-First: Eduard
Author-Name-Last: Inozemtsev
Author-Workplace-Name: Gaidar Institute for Economic Policy
Author-Name: Simonov Andrei
Author-Name-First: Andrei
Author-Name-Last: Simonov
Author-Workplace-Name: Gaidar Institute for Economic Policy
Abstract: The increase in mortgage lending and the need to securitize and standardize mortgage debts creates a need to define rules for the application of individual household credit scores. Thresholds are widely used in mortgage lending, especially in large financial institutions. However, we know very little about how tamper-proof modern credit scoring methods are. We suggest looking into ways people can manipulate credit scores and suggesting ways that financial institutions can mitigate the problem.
Classification-JEL: G21
Keywords: Russian economy, mortgage lending, mortgage debt, credit scoring
Creation-Date: 2020
Revision-Date: 2020
Length: 18 pages
File-URL: https://www.iep.ru/files/RePEc/gai/wpaper/wpaper-2022-1182.pdf
File-Format: application/pdf
File-Function: Revised Version, 2023
Handle: RePEc:gai:wpaper:wpaper-2022-1182