Originally Posted by
leesal
Further to Myles efforts, couldn't resist doing a multivariate model. comparing two loan sets:
1. Debt to income < 20%, enquiries 3 or less, time in job of 3 or more years, exclude new vehicle - new boat - tax - wedding expense - other loan purpose, exclude lendors aged over 60, exclude loans having 2 or more defaults, exclude partial PP, exclude B and C grade who aren't homeowners, exclude all A and all F grades.
2. loans that don't match the above criteria
...
The results show that the model selection produced an average default of 3.6%, while the control had average default of 7.5%. Grade results, showed defaults were approx half in BCD, while E was only slightly improved compared to the control.