From mortgage forbearance to ongoing credit risk management: AI helps FIs prevent loss

U.S. household debt is almost $15 trillion and two-thirds of that is mortgage debt. Pandemic-related unemployment, high inflation and natural disasters increase lenders' credit risk as the deadline to end mortgage forbearance nears. With two million household mortgages in forbearance resulting from pandemic relief, plus a rising number of originations, it is increasingly important to deploy technology that monitors credit risk and predicts delinquency in advance. The Federal Reserve Bank of New York's (NY Fed) Center for Microeconomic Data released its Q2 2021 Quarterly Report on Household Debt and Credit on August 4th, 2021. Delinquency numbers are the lowest they've been since 2006, but household debt has risen to an all-time high.