Can machine learning avoid the next sub-prime home loan crisis?
Freddie Mac is really A united states enterprise that is government-sponsored buys single-family housing loans and bundled them to market it as mortgage-backed securities. This mortgage that is secondary advances the method of getting cash readily available for new housing loans. But, if a lot of loans get standard, it has a ripple influence on the economy once we saw into the 2008 crisis that is financial. Consequently there is certainly an urgent need certainly to develop a device learning pipeline to anticipate whether or otherwise not that loan could get standard as soon as the loan is originated.
In this analysis, i personally use information through the Freddie Mac Single-Family Loan amount dataset. The dataset comprises two components: (1) the mortgage origination information containing all the details as soon as the loan is started and (2) the mortgage payment information that record every re re re payment associated with the loan and any event that is adverse as delayed payment and on occasion even a sell-off. Read more