Credit Score

Study: 70 Percent of EPDs Linked to Fraud 

More than 70 percent of early payment defaults can be linked to a significant misrepresentation on the original loan application, according to a new study released today by BasePoint Analytics. The study concluded that loans containing egregious misrepresentations were up to five times more likely to default in the first six months than loans that did not; more importantly, the study concluded that predictive models could be deployed early in the loan process to help lenders predict which loans were likely to default within the first six months, enabling the loans to be rejected pre-funding.