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Yeah. I get the argument for pricing risk. That’s a genuine improvement on the state of the art. I dont get NINJA loans, because they represent an unfair figh
by intended 1y ago
Yeah.
I get the argument for pricing risk. That’s a genuine improvement on the state of the art.
I dont get NINJA loans, because they represent an unfair fight - a sophisticated loan originator and sales team against people without the background and skills to judge that risk
- potato3732842 1y agoThe person taking out the loan doesn't need to judge the statistical risk or develop an algorithm to compute it, just the individual one. It's like the insurance when you rent a piece of equipment. The insurance is $8 every time because they judge that to be the statistical risk. Sometimes I'm doing something sketchy and take them up on it. Sometimes I'm not and I don't. The problem is a very simple one on my side but very complex on theirs.