Dr. Joseph Breeden, CEO Deep Future Analytics
ABOUT THE PRESENTER
Dr. Breeden literally wrote the book on CECL in addition to the over 80 other articles and books. He has created numerous financial models in his 25+ years, including the Mexican Peso Crisis, Asian Economic Crisis, 2001 Global Recession, Hong Kong SARS Recession, US Mortgage Crisis, and the Global Financial Crisis.
Quantifying Adverse Selection in a Dynamic Environment
Residual credit risk has been trending since mid-2021, possibly due to bureau score inflation. Rising interest rates through 2022 could push adverse selection further into risky territory. We will discuss the drivers of adverse selection, how to quantify adverse selection for campaign tracking, and what actions lenders can take to compensate.