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Lenders learned what makes up a credit score, and how they can be improved.
What lies beneath credit scoring? Discerning lenders want to know and an audio conference set up by CampusMBA: The Learning Center for Real Estate Finance provided the answers.
Karlene Bowen, seminar manager, Fair Isaac and Co., Inc., San Rafael, Calif., provided an overview of credit scores, bureau risk score characteristics, and the development of the scores and their validation.
Bowen said that there are five factors that go into a credit score, but that most of the weight in a score comes from payment history and amounts owed. "We came up with 40 characteristics and grouped these into five categories," she said.
The "Demystifying Credit Scoring" audio conference last week launched CampusMBA, which enables MBA members around the country to collaborate though online discussions and access MBA educational products and courses. "We're focusing on relevant issues to the industry with our CampusMBA program," said Todd Howe, MBA senior staff vice president of corporate relations. `That is why 150 sites with 1,000 people overall were tuned in to hear the audio conference on credit scoring."
Payment history makes up about 35 percent of the score. It includes...