U.S. Floorplan Risk Management
U.S. Retail Originations and Servicing Strategy
Behavioral Scoring Models
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Ford Credit uses proprietary behavioral scoring models to assess the probability of payment default
for each receivable on its payment due date
These models assess the risk of a customer defaulting using a number of variables, including
origination characteristics, customer account history, payment patterns, expected loss or severity
and periodically updated credit bureau information
Before a behavioral scoring model is applied, Ford Credit classifies each customer account to
determine which model to use. Classifications include:
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Financing product (retail, lease)
Customer type (individual, business entity)
Delinquency level (current, due date delinquent, 30 days past due)
Output of the behavioral scoring models is a proprietary risk rating referred to as Probability of
Default (POD) that determines
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How soon an obligor will be contacted after a payment becomes delinquent
How often the obligor will be contacted during the delinquency
How long the account will remain in early stage collections before it is transferred to a more
experienced representative to continue collection efforts
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