total national credit score data mining Imagine the possibilities
Imagine the wealth of information available to the rating agencies to monitor the financial health of unlimited demographic groups! Does anyone know if anyone can gain access to such a goldmine? Not individuals data but groups. It would blow away many of the investigative tools available for inquiry to the financial health of the nation as a whole and her many subgroups. Someone is using it. What do they see.
Banks have access to this technology. They are using it right now in Loss prevention to determine what groups of individuals are delinquent. It determines what type of loan modification a borrower may qualify for if they need assistance. The program allows an agent to use neighborhood foreclosure rates (on city, county and state level), employer financial data, family financial history and social class. There are many other ways to sort the groups depending on the info needed, but for the purpose of loan modification we are not using any other criteria.
What sort of information where you wanting to see?
Various averages mean, medium, mode of of the national score by date. Daily averages as a ratio the DOW would be another.Unemployment numbers in the light of various FICA levels would maybe give leading indicators. Seems the data could be used in a way to provide truth of economic conditions since Gov data is so corrupted. I could think of thousands of ways to crunch the data.I suppose I am little weird in what would capture my interest. I love to learn and tinker. I developed a way to noninvasive monitor homeostasis of neonates. I just have an inquisitive bent toward investigation.
I would think one could see in the data events that are unfolding on a more human level since FICA reflects human suffering and or prosperity. One should see over months whether interventions on a macro level are reaching to the micro level of classes of people. One could then target with interventions and observe outcomes against a control group. Sort of like a double blind study in medicine but assessing human well-being. Assessing FICA change up or down of x group would indicate who is getting any benefit from lending interventions.
Thank you for your response. You must use some of the data in lending.
I am sure they do use the same type of program for lending. However, the information I track is trends in Loss Prevention. One that may interest you is the decrease successful loan modifications. They would like you to believe that they are increasing. Sure demand is increasing, but only about 5% can qualify for a modification. I do not have proof for this theory but I believe banks feel the gov will buy their bad assets sooner or later. This means they really don’t want people to get modifications. Another indicator I am monitoring is the Delinquency rates vs social classes and FICO scores. I doubt the data would be suprising for anyone. I get to see a snapshoots of what could be down the road. Are there specifics you were curious about? I would think the government would have to have access to this information as well. Unless they are choosing to ignore it. The numbers I have are only good for the all the borrowers in one institution. Banks can compile their data to do larger trend analysis, but then the more hands that touch the information…..corrupt it.
Were you able to see changes coming with your data? IF so how did they compare to other indicators? Can you go back months/years and re-sift the data? In 2003 or at any point did any class sound an alarm something was very wrong compared to the long term historical mean? Do banks corrupt the data set or select for desired outcomes or both? Do you have the authority to conduct your own investigations? That was a bunch of questions I don’t expect you to have to answer all these. I get a little obsessive when the wheel start turning.
Thanks I sure appreciate your time!
What I enjoy most about my job is that numbers don’t lie. They are compiled without people to adjust them. So I get to see these trends first. I can say as they get handed from supervisor to management to executive everything gets altered. They get paid based on certain numbers so they make sure that happens.
I am able to see changes coming. It is a program so you can ask for any amount of data. One would have to interpret the information. One area that always has concern me is what indicators they used to give a loan. Gross Income. The reason this does not make sense is with increasing medical premiums and taxes people were given to much. I cannot speak for all banks, but this one 20 years ago used net income. Why the change? It has caused huge issues that will only grow later. Another trend 1st mort applications were based on net income……Home Equity loans were based on gross income.
You can pull any type of data as far back as when the company started. I have over 100 years of data to look at trends.
There were many alarms not just one. Sharp increases in delinquency rates and unemployment claims for families making 50k and less (gross income) and household with gross income 100k +. Since the upper class is only 5% of the population it took a few years to finally catch up to the middle class.
I do have the ability to do my own investigration, but I am not able to disclose any specific information.
Wow I would love to have that kind of access. I am very tired at the moment and need some sleep. I Need to wash this around and see what evolves.
It is alot of info. It also is something I can’t control which makes it more difficult for me. Get some sleep and take care!
I did want to add on concern I am still watching. All the people that are doing foreclosures, short sales or walking away from debt are not getting the full picture.
Most people have 2 or more mortgages on these properties. The options above usually indicates that only the 1st lien will be wiped clean. The other liens turn into unsecured debt and haunt the homeowner forever. The government also sees this lien as income and will tax you. The first wave of these accounts are coming the the surface. Over the next 2-3 years the beast will show it fangs.
Here is an example:
1st mort 100k
2nd mort 50k
The borrower cannot afford the home and the bank will not do a modification. The borrower does a short sale for 95k. The 1st mort will take the entire amount and charge off the 5k. The 2nd lien is turned into a unsecured line of credit after the sale (Usually with interest above 9%). So the borrower still owes 50k. Fast forward 3 months for 2008 taxes and this borrower has to report 50k as income for 2008.
People need to wake up and see that the gov is just as guilty as the banks.
Another concern is since the bailout passed the guidelines for modifications are tighter. If your income to debt ratio is 65% or higher you don’t make enough and if it is lower than 50% they believe you can afford the payments. This is even more proof for some reason the banks don’t want to do modifications. Maybe you can shed some light and tell me why? I am at a loss on this one.
I am sorry if this is long.
This was not to long at all.
But your question; why are the banks…. Really messed me up. I have been unable to abandon the question since you posed it. When something like this happens weeks turn to months of obsessive pursuit. This has prompted a paradigm shift in my mind an epiphany, a revelation of grand proportion. I sense this will be one of those illuminating moments that one has at best only handful of. The question sparked something in me that has revealed a limiting pattern in my contemplations and examinations of the unfolding events. I seem of late to be chasing after what is happening and neglecting to probe why.