Right now, there are around 44 million consumers without a traditional FICO score (sometimes called “Credit Invisibles”) in the United States. Lenders are just beginning to underwrite loans to them using artificial intelligence and alternative data. Add the developing world, and the number of underserved consumers who might be reached with AI shoots up to a billion. In short, this is a huge opportunity. But AI and alternative data pose unique risks, ranging from regulatory compliance, to public acceptance, to credit quality.
Please join Alex C. Lakatos of Mayer Brown LLP for a presentation that will enable listeners to get the following benefits:
- Understand how AI and alternative credit are being used to underwrite loans
- Identify key regulatory risks (e.g., ECOA, FCRA) that lenders using AI face
- Appreciate the unique model governance and validation challenges that AI poses
- Describe how AI may be leveraged to assist secondary market participants to conduct due diligence—e.g., is the paper being offered what it purports to be?
- List practical, actionable questions that secondary market participants should ask
For more information about this event, please visit the event website.
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