CU*Northwest has partnered with Portfolio Defense Consulting Group, a recognized expert in consumer credit risk management and modeling to develop a custom empirical model that is based on actual sampling of varying sized credit union loans. The model can be filtered based on the following criteria:
- Credit Score minimum
- Debt-to-Income ratio maximum
- Length of employment (minimum number of years)
- Length of residency (minimum number of years)
- Presence of bankruptcy
- Presence of non-medical collections
- Presence of other major derogatories (repossession, foreclosure, tax lien. etc.)
Because 247 Lender is handled through our online credit report partner, Zoot, we have been able to create a model solution that is bureau agnostic. There are no annual fees and changes that can be made by your staff on the fly without charge.
How it Works
You will use the existing CU*BASE Approval Matrix feature to configure the products and services that will be approved based on the model score. You will also set up the filter variables mentioned above to control which apps will be run throughout the model.
When an online app is submitted or when an employee requests a new credit report, CU*BASE pulls the report and sends your filter parameters to Zoot. If the filter fails, no decision will be pulled (and CU*BASE will store the reason so you can follow up). If the filter passes, a decision model will then be pulled and returned to the credit union, where this decision indicated.
Schedule of Tasks
- We will review the program with your management team and give them the information necessary to run the program effectively
- We will include a full review of how the model was developed, expected results, channels to utilize and audit responsibilities
- We will serve as a liaison for getting the credit union set up with the credit bureau and discuss pricing methodology
- We will assist in the development of the loan policy necessary for you to implement the Model
- Will include a sample policy which has been used by many credit unions and vetted by regulators and auditors
- We will consult on the set-up of the filter configurations to guarantee that you are not sending loans through the model that you would automatically deny anyway
- We will configure the delivery channels you desire the model be attached to on CU*BASE including:
- Direct Loans
- Indirect Loans
- It’s Me 247
- We will train your staff on the nuances of the product and best practice utilization of the decisions for both lending and cross sales
- Completed through a web conference session and focused on selling the system too the staff for their buy-in
- We will train on the monthly review of reports for understanding and tracking high and low side exceptions
- We will turn it on- you are live on the Automated Decision Model
Phone and video meeting to ensure comfort with the product and decisions the tool set is making.