Publications

Publications

Identifying the Optimal DTI Definintion Through Analytics

Identifying the Optimal DTI Definintion Through Analytics

The following white paper prepared by CRIF Lending Solutions will explore the main characteristics of three alternative ways the commonly used Debt to Income (DTI) measure can be calculated. The different versions are first described in terms of main characteristics and then analyzed in terms of risk prediction using portfolio data. The main goal is to benchmark each version compared to the others in order to provide financial institutions with meaningful insights.