Tuesday, January 8, 2013

When is performance inference required?

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Performance inference is almost always required in credit origination models. The guidelines from the OCC (Office of the Comptroller of the Currency) indicate that these models consider the full TTD (Through The Door) population in model development.

In other modeling situations, inference may not be required, or even feasible; however, when possible and time permitting, it is best practice.

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