3.23.2007

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!)

1 comment:

  1. I'll say there was an over reliance.

    Liquidity is what killed the subprime market. Lack of liquidity in the lenders, and lack of liquidity in the borrowers.

    Dig your blog!

    ReplyDelete

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