Responsible Lending behavior metrics and scores: Outsized Rates

Responsible behavior in a lending context is the practice of extending fair and reasonable terms to borrowers during the loan origination process; to facilitate the measurement of and highlight the extent of potentially predatory practices within a deal or market segment, quantitative-based metrics have been developed.

Loans issued and then passed to the three different Government Sponsored Enterprises (GSEs) (GNMA, FNMA, and FHLMC) have been considered as separate universes, due to the different eligibility requirements. In this research, we focus on 30 Year Fixed Rate Loans originated after the Great Financial Crisis (GFC).

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Supporting documents

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