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Well, I guess the sticking point is that no one has found a better way to measure loan risk. If they had, lenders would work with the agency that more accuratel
by stult 9y ago
Well, I guess the sticking point is that no one has found a better way to measure loan risk. If they had, lenders would work with the agency that more accurately assesses their risk because otherwise they are leaving money on the table by not lending to creditworthy individuals.
- cmiles74 9y agoAgreed. As long as credit reporting companies report conservative numbers and lenders err on the side of minimizing risk, all of the potential lost dollars will fall into the "loans I could've made money on but decided not to loan out" category and that is difficult to gauge.
- rectang 9y ago> no one has found a better way to measure loan risk. Or rather, that the system which measures loan risk is feasible only because the parasitical entities which run it push the massive negative externalities onto the general population. If the loan risk system actually had to pay for all the harm it does, it would be a loser.