Automated underwriting software
Automated underwriting software AKA The Subprime Loan Machine
Business
The Subprime Loan Machine
By LYNNLEY BROWNING
Published: March 23, 2007
A little-noticed tool of automated underwriting software helped fuel the recent subprime mortgage boom.
Comment: Interesting read and explains how automated risk scoring systems enabled the subprime business to boom. (Perhaps there was an over reliance on these systems!)
I'll say there was an over reliance.
ReplyDeleteLiquidity is what killed the subprime market. Lack of liquidity in the lenders, and lack of liquidity in the borrowers.
Dig your blog!