Search
 

Current Environment Begs for a Traditional Credit Score Re-Evaluation

NATIONAL HARBOR, Md. -- With the economy slumped and unemployment soaring, credit unions can't afford to wait to re-evaluate the credit scores within their portfolios, one analyst said at NAFCU's 42nd Annual Conference & Exhibition.

By Sarah Snell Cooke | Updated on July 28, 2009

NATIONAL HARBOR, Md. — With the economy slumped and unemployment soaring, credit unions can’t afford to wait to re-evaluate the credit scores within their portfolios, one analyst said at NAFCU’s 42nd Annual Conference & Exhibition.

Sarah Davies, senior vice president of analytics and product management at VantageScore Solutions LLC, said that recent events should alert credit unions to the need for carefully analyzing the risk they have in portfolio. For example, she said that a credit union that set its credit score floor for mortgages at 750 between June 2003 and June 2005 would have about a 0.4% risk of default. However, that same score between June 2006 and June 2008 raised the risk of default up to 2.4%.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.