walkitout (walkitout) wrote,

mmmm, email

Awhile ago, I ran across a prediction for the housing market that I thought was...interesting. I tracked it down partway, and then hit a wall, in that I was unable to decide what I thought of the source. In my efforts to research them via their website, I signed up to get email and today, I got email advertising a new product they are selling:


This doesn't include anywhere near the level of detail in the e-mail I got, which included things like this:

"What Goes Into the ForeScores?
Local economic variables like income, employment, unemployment, and inflation
Zip code level demographics like population growth and distribution
Forecasts of future collateral values with quarterly updates
Local legal environment like recourse, judicial foreclosure, and predatory lending laws
Local political variables like property taxes and growth controls
Local topography factors -- e.g. coastal -- that affect loan performance"


"UFA has brought together the best minds in the industry and in academia to create
simple metrics for the economic risks of default and prepayment at the zip code

Perhaps someone can explain to me how this is not redlining?

You don't need to explain to me why lenders would want to do this. I'm not an idiot. I understand that part.

ETA: UFA is offering a free test drive (historical) of the data. About a year ago, WaPo worried about this practice:


I think it's fair to say that it is no longer some major lenders doing it; it is now industry practice.
Tags: real estate

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