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The FDIC’s definition for assessing subprime is changing

Published: July 27, 2012 by admin

The FDIC has proposed a new rule that will change the way large lenders define and calculate risk for their FDIC Deposit Insurance Assessment. The revised definitions in the proposed rule rely on “probability of default” and eliminate all references to the traditional three-digit credit score used to calculate subprime exposure — changing the way large banks calculate their FDIC assessments. This new ruling will allow lenders to uniformly assess risk in their portfolios–regardless of the scoring models they use.

View a recent webinar to hear from a panel of experts on the “The New Subprime Definition: Who is subprime now?”

Source: FDIC Proposed Ruling Announcement

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