Models and Scoring
When used properly, credit scoring models are effective risk management tools. National banks can use credit scoring models to
- control risk selection,
- manage credit losses,
- evaluate new loan programs,
- improve loan approval processing time,
- ensure that existing credit criteria are sound and consistently applied,
- improve compliance with the Equal Credit Opportunity Act and the Fair Housing Act, and
- improve profitability.
Follow the links on this page to regulatory resources related to credit models and scoring.
Risk Modeling, Model Validation (OCC 2000-16, May 2000)
Provides guidance for mitigating potential risks arising from reliance on computer-based financial models that are improperly validated or tested