Handbook of Credit Scoring

Bankers and lenders depend on credit scoring to determine the best credit risks - and insure maximum profit and security from their loan portfolios. This handbook offers the insights of experts on credit scoring systems. Topics include: scoring applications; generic and customized scoring models; using consumer credit information; scorecard modelling with continuous versus classed variables; the basics of scorecard development and validation; going beyond credit score; basics of a better application score; optimal use of statistical techniques; data mining; a multi-score approach for portfolio management; reject inference in credit operations; model design and validation; measures for model validation; evaluating and monitoring models; score-based collection strategies; project management for credit scoring; and successful implementation.

Table of Contents:
Section I: INTRODUCTION Scoring Applications William M. Makuch Generic and Customized Scoring Models: A Comparison Gary G. Chandler Using Consumer Credit Information Maria T. Pincetich and Kristin M. Tobin Scorecard Modeling with Continuous vs. Classed Variables Dennis Ash and Dimitra Vlatsa Section II: MODEL DEVELOPMENT The Basics of Scorecard Development and Validation Elizabeth Mays Going Beyond Credit Score: The Development of a Loss Model for the Home Equity Business Wei Wang The Basics of a Better Application Score William M. Makuch Optimal Use of Statistical Techniques John M. L. Gruenstein Data Mining Allen Jost A Multi-Score Approach for Portfolio Management Tim Lee and Sung Chang Jung Reject Inference in Credit Operations David Hand Section III: SCORE VALIDATION Model Design and Validation: Identifying Potential Sources of Model Risk Dennis Glennon Measures for Model Validation Tim Lee Evaluating and Monitoring Your Model Richard Schiffman Section IV: MODEL IMPLEMENTATION AND SCORE MANAGEMENT Score-Based Collections Strategies Peter McAllister and Dana Eng Project Management for Credit Scoring Dana Wiklund Successful Implementation - To Be or Not To Be ... Mona Mayr Index

About the Author :
Elizabeth Mays is the Director of Risk Modeling for Citigroup's Consumer Asset Division. Her area is responsible for building credit risk models for first and second mortgages, student loans, and other consumer loan products. She was previously with Freddie Mac where she worked in the area of automated underwriting, and spent eight years with the Office of Thrift Supervision building models to measure interest rate risk. She has published a number of articles on risk management and is the edi- tor of Credit Risk Modeling: Design and Application and co-editor of a book on interest rate risk measurement and modeling, Interest Rate Risk Models: Theory and Application. She holds a Ph.D. in Economics from the University of Cincinnati.