Magazine article American Banker

Irwin Gets High Grade in Scoring Technology

Magazine article American Banker

Irwin Gets High Grade in Scoring Technology

Article excerpt

Second of two parts

After a two-year shakeout, the independent subprime lenders that did not get shaken out are spending more on technology to reduce paperwork and better analyze consumers with impaired credit so that fewer problem loans are made and end up in securitized pools.

The results have been mixed, but one company that seems to be using technology effectively in the cherry-picking process is Irwin Home Equity of San Ramon, Calif., a subsidiary of Columbus, Ind.-based Irwin Financial Corp.

Irwin Home Equity was founded in 1995 and has never operated independently, but observers say the independents would do well to copy some of its systems practices.

It "has been particularly effective in the technology arena not simply because they buy big computers, but because they have done a lot of studies and incorporated math in such a way that they can identify less-risky borrowers from a mix," said a ratings agency executive speaking on condition of anonymity. "They're looking at criteria that others don't, so their loans are performing better."

Irwin's achievements are not just a result of analyzing more criteria, however.

"Since our inception, we've been able to significantly leverage database management technology to the point where we've developed a competitive advantage," said president and chief executive officer Elena Delgado, who says the company's originations will increase to somewhere between $800 million and $1 billion this year, or roughly twice 1999's volume. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.