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You will find many resources, articles, research and studies on the equipment lease finance industry. Some products are free, and some of our products are free to Foundation donors. For information on supporting the Equipment Leasing & Finance Foundation, visit our donor page.
Credit scoring models have proliferated in the equipment finance industry. Recent lending institution failures outside the equipment finance industry may have underscored the risk of over-reliance on automated scoring models in place of human judgment. Although it has been shown that in the case of an extremely large number of mortgages no evaluation process of any sort was used in considering the risk inherent in so called “liars loans”. Many recent failures may also have underscored the risks of stressing scoring models beyond the scope of their original design. Therefore, the Foundation set out to determine how credit scoring models are affecting industry credit decisioning and, furthermore, whether the current economic downturn has had any impact on the predictive capacity of these scoring models.