Author Topic: Interest & Charge-off Rate Changes  (Read 12971 times)

Fred

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Re: Interest & Charge-off Rate Changes
« Reply #30 on: May 06, 2014, 10:49:47 AM »
Generally a lender is going to have concentration limits on states. 

In my previous line of work, we experimented with using zipcode as a risk factor.  Our assumption was that state-based categorization was too broad; it mattered where in the state the borrower lived.

Bohb Daishi

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Re: Interest & Charge-off Rate Changes
« Reply #31 on: May 07, 2014, 03:35:45 AM »
Generally a lender is going to have concentration limits on states. 

In my previous line of work, we experimented with using zipcode as a risk factor.  Our assumption was that state-based categorization was too broad; it mattered where in the state the borrower lived.

How effective was breaking it down by zip code? I know companies like Costco and Whole Foods only put stores in wealthier zip codes, while avoiding poor areas. But these are grocery stores, not consumer loans.
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kbenson99

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Re: Interest & Charge-off Rate Changes
« Reply #32 on: May 07, 2014, 12:33:40 PM »
Has anyone experimented with local (at the county level) unemployment rates?  I've been experimenting with unemployment rates (using BLS data and Google maps to obtain county) as one of my determining factors since the first of February '14.  I didn't want to exclude entire states, such as CA, if the loan met my other filter criteria.