Developers of credit score models and users of credit scores should conduct a performance validation annually to understand model performance and outputs against current consumer behavior. VantageScore Solutions transparently provides the results of the validations of its models, which separates itself from other credit score model developers. Using the most recent consumer credit data available,the VantageScore 1.0 model was validated using a number of tests designed to align with recent guidance from the Office of the Comptroller of the Currency (OCC) in response to the banking industry’s increasing reliance on modeling and analytics to drive decision making. Not only do the papers describe the results of the model validations, but they provide an invaluable road map that allows lenders to develop a robust model validation philosophy and function within their institution.
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