Scoring method for default prediction on mortgages
Institut Louis Bachelier - ILB Data Lab
In this period of low interest rates, retail banks have been fighting to get new customers by offering low interest rates on mortgages. This may lead to an increase in the risk bared by the bank. Thus, the goal is to develop a model based on machine learning to predict the mortgages that are most likely to default in the short run, based on private and open data.