Having said that, some information may lack a clear nexus to creditworthiness.
These information could be regarded as proxies or signals of prospective creditworthiness or future earnings. Generally speaking, the greater amount of speculative the nexus with creditworthiness, the larger the lending risk that is fair. 23 it is possible to find samples of correlations between factors that aren’t meaningfully related. 24 No matter if the information possess some predictive foundation, towards the level the information are correlated with competition or other forbidden bases beneath the reasonable financing legislation, careful analysis is critical. Continue reading “In addition it stops banking institutions from making loans open to creditworthy borrowers”