Geographic County Scoring
Business Case
- Lack of a reliable set of real estate risk drivers can lead to losses.
- Risk information for U.S. counties outside of a MSA (Metropolitan Statistical Area) is not available.
- While some information was
available for counties inside a MSA, the data was too general and
only covered ~10% of the U.S.
Actions Taken
- Assembled a panel of real estate credit experts to describe the possible events that could lead to losses.
- Researched, compiled, then modeled data to determine the critical few risk drivers
- Developed models to classify risk for all 3,900+ U.S. counties into one of four geographic tiers.
Business Results
- Developed and deployed business-wide standards to support origination and portfolio management efforts.
- The results provided a reliable, concise method for classifying counties by risk.
- The results significantly improved
productivity in underwriting and portfolio management and improved
proactive posture.
Please send me more information on developing geographic scoring models.