Comments on: Score the unscored! http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Rodrick Soulia http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-55550 Sun, 19 Oct 2014 06:00:07 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-55550 266860 956975Maximize your by how a large amount of gear are employed internationally and will often impart numerous memory employing that your is also fighting that is actually a result from our team rrnside the twenty 1st centuries. day-to-day deal livingsocial discount baltimore washington 590820

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By: traduceri daneza romana http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-53505 Mon, 29 Sep 2014 13:56:49 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-53505 Do you mind if I quote a couple of your articles as long as I provide credit and sources back to your blog? My website is in the exact same niche as yours and my users would certainly benefit from some of the information you provide here. Please let me know if this okay with you. Cheers!

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By: Bethany12 http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-47386 Tue, 18 Jun 2013 23:56:52 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-47386 “As a result, what you really want, it seems to me, is two things. First is a dataset which is obviously germane in terms of throwing light on an individual’s ability to pay her obligations in a timely manner. and second is a way to get that dataset into the hands of the institutions which really matter, when it comes to this particular game: the three big credit bureaus, as well as FICO.”

ERRRRR

The institutions that really matter are BANKS! The ones who lend the money and face the risk! Giving it to credit bureaus means giving it to an intermediary; who will they finally give it to? BANKS. So giving it to credit bureaus is just adding an unnecessary rise in the cost by giving a mark-up to these intermediaries. The reason for Credit Bureaus to exist is the lack of information other than credit history; if we finally find alternative information that can replace or even better, outperform credit history, then Credit Bureaus have their days numbered as the de facto providers of information to assess credit risk of new applicants for banks.

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By: carlos2401 http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-47385 Tue, 18 Jun 2013 23:53:27 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-47385 “As a result, what you really want, it seems to me, is two things. First is a dataset which is obviously germane in terms of throwing light on an individual’s ability to pay her obligations in a timely manner. and second is a way to get that dataset into the hands of the institutions which really matter, when it comes to this particular game: the three big credit bureaus, as well as FICO.”

ERRRRR

The institutions that really matter are BANKS! the ones who lend the money and face the risk! givint it to credit bureaus means giving it to an intermediary; who will they finally give it to? BANKS. So giving it to credit bureaus is just adding an innecesary rise in the cost by giving a mark-up to these intermediaries. The reason for Credit Bureaus to exist is the lack of information other than credit history; if we finally find alternative information that can replace or even better, outperform credit history, then Credit Bureaus have their days numbered as the de facto providers of information to assess credit risk of new applicants for banks.

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By: Eericsonjr http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-47381 Tue, 18 Jun 2013 18:01:13 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-47381 Felix: HUD and local housing authorities do not collect rent from tenants, except in rare cases. What happens is this: The tenant is part of a program called Section 8, the rules of which state that they (the tenant) will have to pay no more than 35 percent of their income (give or take–the rules differ place to place) for rent. HUD–i.e. federal taxpayers–will pick up the rest.

Most such tenants have no reportable income. They pay 35 percent of that figure–0–towards rent. Many have small under the table gigs that generate cash income but not a lot.

The way to make your idea work is to get electric companies and other utilities, including the big cable & dish TV outfits, to report. Those things are not so heavily subsidized by the government and so those are the things that poor people actually have to pay.

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By: Btdubya http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-47375 Tue, 18 Jun 2013 02:19:24 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-47375 Disclaimer – I’m with Cognical, so that’s my frame, but I think there’s a pretty significant misunderstanding: Cognical does not mine data. On the contrary , we use deep learning technology to help lenders better understand the data they are already using. Again: We do not add data. (Yes, some of our funding is going to a website overhaul).

The conversation we are perpetuating is that everyone is looking to “big data” as the path to enlightenment, which implicitly implies we’ve exhausted all of the predictive signals in smaller data sets. We are proving the opposite. There is a ton of predictive left to extract in lenders’ smaller data sets, but existing modeling solutions can’t find them. In the payday space, where LendUp plays, we’re growing lender profit 25% – 75% not by mining data, but by giving applicants credit for compensating factors unrecognized by less sophisticated underwriting models. It’s not a black box, just a more accurate solution.

But to address the greater point, we agree that rental data is awesome. And to the degree lenders use it then we’ll help them objectively value that data. But Cognical doesn’t procure data in any way. We just make the best sense of it.

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By: Btdubya http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-47374 Tue, 18 Jun 2013 02:18:45 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-47374 Disclaimer – I’m with Cognical, so that’s my frame, but I think there’s a pretty significant misunderstanding: Cognical does not mine data. On the contrary , we use deep learning technology to help lenders better understand the data they are already using. Again: We do not add data. (Yes, some of our funding is going to a website overhaul).

The conversation we are perpetuating is that everyone is looking to “big data” as the path to enlightenment, which implicitly implies we’ve exhausted all of the predictive signals in smaller data sets. We are proving the opposite. There is a ton of predictive left to extract in lenders’ smaller data sets, but existing modeling solutions can’t find them. In the payday space, where LendUp plays, we’re growing lender profit 25% – 75% not by mining data, but by giving applicants credit for compensating factors unrecognized by less sophisticated underwriting models. It’s not a black box, just a more accurate solution.

But to address the greater point, we agree that rental data is awesome. And to the degree lenders use it then we’ll help them objectively value that data. But Cognical doesn’t procure data in any way. We just make the best sense of it.

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By: Auros http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-47362 Mon, 17 Jun 2013 16:59:34 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-47362 I share Albert Sun’s concern; I’ve had at least one really nasty landlord who I wouldn’t have trusted with power to affect my credit rating. If you were going to let random private landlords have access to this system, you’d want to do it by having them register with a payment processor, so the tenant sends payment (maybe with a direct debit option of some kind, as well as sending checks) to the processor, and the processor forwards it to the landlord, and the date of the transaction gets recorded for scoring.

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By: albertsun http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-47361 Mon, 17 Jun 2013 15:44:09 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-47361 All great except it’s giving possibly unscrupulous landlords the ability to blow up your credit rating.

Credit scores seem like exhibit number one in individuals not having enough control over how their personal data is used.

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By: dWj http://blogs.reuters.com/felix-salmon/2013/06/17/score-the-unscored/comment-page-1/#comment-47360 Mon, 17 Jun 2013 15:04:12 +0000 http://blogs.reuters.com/felix-salmon/?p=22092#comment-47360 I was expecting to see “utility bills” much higher up than the last paragraph; the number of relevant creditors is far smaller than the number of landlords, and are typically subject to heavy regulation, so it would be comparatively easy to persuade all of them to report their data.

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