Distribution Of Characteristics

In the preceding analysis I discussed how different loan and borrower characteristics defined the nonagency sectors. For the most part, I focused on minimum acceptable levels and sector averages. However, it is actually the distribution of these various factors that is most important. I say this because most of these variables have an impact on credit performance and speed in nonlinear ways. For example, defaults may increase x% going from a FICO score of 700 to 650 but increase 3x% moving an equal 50 points from 650 to 600. Thus it is the distribution of variables and, in particular, the lower cutoff point that is as important as the overall average.

Avoiding Credit Card Disaster

Avoiding Credit Card Disaster

People who struggle with saving money and getting out of debt will find these things in common: They don't know how to stop blaming. They have no idea where their money needs to go! They don't know they need to forget the home equity line. They also don't understand they need to sell some investments. Many more problems untold. Well don't worry, With the strategies that I’m about to let you in on , you will have no problems when it comes to understanding how to get out of credit card debt.

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