RC_LP_U_302.3 Credit Scores in Risk Assessment

Credit Scores in Risk Assessment explores the role credit scores play in determining the risk associated with a particular loan. The course begins with a general look at risk assessment and the use of credit scores in the process. The course then discusses the primary risk of the loan by examining credit-related and non-credit-related risk factors, how the representative score is determined, risk weighting and classification, how to balance credit score with the LTV, and how to understand relative change in credit score risk. From there, the course looks at contributory risk factors and loan-level price adjustments. Next, the course focuses on trended credit data and low and inaccurate credit scores, as well as what to do when an underwriter disagrees with the credit score. Finally, extenuating circumstances are explored.

This is a single-family/residential course.