RC_LP_U_302.1 Origin of Credit Scores in Lending

A credit score is a statistical summary of a consumer's credit information at a specific point in time. Lenders benefit greatly from credit scores because of their ability to predict credit risk fairly and accurately. The credit score is a valuable tool when assessing the overall risk in a loan application.

Origin of Credit Scores in Lending will define credit scores and examine their evolution in the finance and mortgage industry. It will also examine the credit scoring process, the FICO score, where lenders obtain credit scores as well as how they use them. From there the course will review the advantages of credit scores and, finally, examine their relationship to consumer reporting agencies (CRAs).

This is a single-family/residential course.