Why Lenders Should Focus on Profitability, Not First Payment Default (FPD)

Posted by John Bennett on September 4, 2017

Many non-bank lenders base their lending decisions on predictions about which applicants are likely to incur a First Payment Default (FPD)—that is, which applicants are likely to be late making their first payment on a loan. Lenders assume that by predicting FPD they will be able to predict which applicants are likely to default on the loans entirely, resulting in losses for the lender.

Read More

Tags: lending, data waterfall, First Payment Default (FPD)