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The
ForeScore™ Suite is a powerful set of tools that make it possible for lenders to
dramatically increase profits while carefully controlling risks and
costs. |
Using the ForeScore™ system allows
lenders to:
- Increase the
proportion of profitable loans and confidently buy deeper
- Gain competitive
advantage over companies that use traditional risk-assessment tools
- Identify the
appropriate interest rate and loan terms that make deals profitable
- Automate processes and
reduce costs
- Understand and control macroeconomic risks
like unemployment and interest rates
- Understand and manage local economic risks
that affect the borrower and the collateral
- Risk-price loans to increase volume and
profits
- Design products that increase volume and
profits
- Understand prepayment risks and design
strategies for customer retention
- Address regulatory auditing needs including
value at risk
Underlying the ForeScore™ system is a unique
approach to loan analysis that evaluates not only borrower credit but also the product
structure, the collateral and the local economic conditions. The approach is illustrated
below.
This comprehensive approach considers all
four elements of loan value and greatly increases a lenders ability to recover profitable
loans from the pool of applicants. Loan volume can be increased even while holding
expected defaults constant. Large "swap sets" are uncovered that
dramatically increase profits.
The components of the system are:
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