tag:blogger.com,1999:blog-2330294340043347758.post2536606605500090402..comments2023-04-27T05:35:24.073-04:00Comments on Jim Blaine on Credit Unions: Risk-Based Lending... In A Political YearJim Blainehttp://www.blogger.com/profile/15231738536629398905noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-2330294340043347758.post-37804882030870836612016-07-26T08:37:54.701-04:002016-07-26T08:37:54.701-04:00To set the record straight....we meet with all the...To set the record straight....we meet with all the cards and don't lend to those we believe will default regardless of their FICO scores. We use risk based Pricing for the interest rate they have earned by the past performance and resulting score. We do not do risk based Lending. The score determines the rate not the decision to make the loan.<br />Georgia BirddogAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-86141135338231945312016-07-26T07:30:11.798-04:002016-07-26T07:30:11.798-04:00Alright Dennis, I'm a little slow on that last...Alright Dennis, I'm a little slow on that last "phrase"... "tr er M" ??<br /><br /> Please translate.Jim Blainehttps://www.blogger.com/profile/15231738536629398905noreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-74555842332012216342016-07-25T19:27:43.038-04:002016-07-25T19:27:43.038-04:00Look James you keep making it difficult for the RB...Look James you keep making it difficult for the RB theorists to make their case and you will find it difficult to win elective office! Go a little easier and give them some wiggle room. You have to start an e to a d somewhere although I think it ought to be the color of their hair. Let's make credit unions great again.... Dennis tr er M.Dennis Moriarityhttps://www.blogger.com/profile/16805038356425801180noreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-1713324710515629552016-07-25T18:07:00.044-04:002016-07-25T18:07:00.044-04:00While the Birddog is trying to figure out which CU...While the Birddog is trying to figure out which CU I'm talking about... a couple of points on his comment.<br /><br />1) In person you can tell a lot about a person... never hurts to hear more of the story behind that credit score... quite often it is very real life stuff that happens to really good people - death in the family, unexpected job loss, divorce, a kid on drugs, personal sickness, a case of bad personal judgment now fully regretted.<br /><br />2) That "E" bottom range runs from say 300 to 580... not really too hard to tell a 300 from a 580... it's quite a broad range! "Profiles" a lot of folks incorrectly. Ever wonder how the ranges are set and whether they are set accurately, fairly?<br /><br />3) For those of you who've been around a while, bet you would agree that there is not a lot of difference between an "E" 580 and a"D 581 - right? Or between an "E" 579 and a "D" 582 - right?<br /><br />4) You don't have to get it right every time but if you can find just two out of five jacks you will make lifetime friends for your CU!<br /><br />5) every non-paying queen-member you can identify and send down the street to a competitor improves your bottom line and keeps those competitors "awfully" busy!<br /><br />6) Every jack you "save' has family and friends who he will send to you in the future - best recommendation you can get!Jim Blainehttps://www.blogger.com/profile/15231738536629398905noreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-47338668531925672492016-07-25T16:24:42.589-04:002016-07-25T16:24:42.589-04:00Birddog!
First can you just share with us say you...Birddog!<br /><br />First can you just share with us say your rate structure (A-E) for a used car loan at a hypothetical, wonderful credit union in the Peach State, which has great leadership - hypothetical of course!Jim Blainehttps://www.blogger.com/profile/15231738536629398905noreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-14009239121663315122016-07-25T16:21:23.363-04:002016-07-25T16:21:23.363-04:00First. I am personally open to the possibility of ...First. I am personally open to the possibility of voting for the Maytag repairman at this point!Jim Blainehttps://www.blogger.com/profile/15231738536629398905noreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-42371556241406447492016-07-25T15:47:36.429-04:002016-07-25T15:47:36.429-04:00I'm just a micro kind of guy....I'm just a micro kind of guy.... Dennis Moriarityhttps://www.blogger.com/profile/16805038356425801180noreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-38314992230054741342016-07-25T10:07:31.336-04:002016-07-25T10:07:31.336-04:00If you know that 100% of the Jacks will pay and 20...If you know that 100% of the Jacks will pay and 20% of the Queens will NOT pay their debts, then you can charge the Queens enough to offset their group's losses. But, you did not provide the methodology for assuring that you can determine the borrowers who won't pay. What we typically deal with are all Jacks and if we could pick out those we know won't repay, we wouldn't lend to them. So, back to the deck of cards...The Aces get the lowest rate because they have the highest percentage of those that repay. Then the Kings who get (have earned)a slightly higher interest rate because they have a slightly higher default rate, etc. etc. etc. Most of us aren't as clairvoyant as our blogger from North Carolina so we adopt the risk based pricing model. <br />Georgia Birddog Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-4875866546432624152016-07-25T10:05:45.371-04:002016-07-25T10:05:45.371-04:00There is nothing FAIR about a credit score! Use o...There is nothing FAIR about a credit score! Use of it solely to justify a credit pricing decision could lead to real discrimination. If a credit union were to use a true risk based pricing model, it needs to be empirically derived and statistically sound. It should be based on the individual credit union's experience. The present use of a credit score to allocate pricing as used by most credit unions as justification for pricing is nothing better than a SWAG!<br /><br />Also, you can not support Greg or Dennis because it is an election year as you suggest. Presidential elections are State by State events. In only a hand full of States will a vote matter. In Delaware, my home state, you could support Trump to no avail. A Hillary support in Oklahoma is more lonely than the Maytag Repairman. Anonymoushttps://www.blogger.com/profile/03049458801383200209noreply@blogger.comtag:blogger.com,1999:blog-2330294340043347758.post-47941867275423772112016-07-25T08:03:37.973-04:002016-07-25T08:03:37.973-04:00Had a little "delayed message" behind so...Had a little "delayed message" behind some of the picture images. If that "hack" got downloaded to you please reload the post.<br /><br />I may not be a big fan of risked-based lending, but wouldn't tell folks to "FO" about it!<br /><br />Sorry! Jim Blainehttps://www.blogger.com/profile/15231738536629398905noreply@blogger.com