Author Topic: Wild expected return discrepancies between similar filter criteria  (Read 3856 times)

jebediah

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In LR, I have a new primary market rule as such:

term = 36
LR score = 13 and above

My estimate says: 14% +/- 7.1% return for 44 loans, total of $1100 available.


Now, consider this primary market rule:

term = 36
Highest LR Score = Top 2%

My estimate says: 9% +/- 4.7% return for 47 loans, total of $1175 available.


Why are these return estimates so different? How are these 44 vs 47 loans not more or less the same loans?