Risk Based Pricing Support

A couple of years ago I developed a tier pricing for portfolio mortgage loans based on LTV and Credit Scores. We are being asked to provide "support" for pricing tiers and costs. I think I copied the LTV and Credit Score Matrix from someone - and our CEO reviewed it and stated it was supported by the industry. Does anyone know where I could get maybe an industry standard tier pricing - or statistics that support tier pricing?

The first step I would suggest is to look at delinquencies and defaults to see how those match the system you used to make the credit decision. That would be the most direct way to validate your risk grid. And, it is probably more accurate that simply using someone else's standard.

But -- speaking of third parties -- you should also look at the sub-prime lending guidance from the regulators. It is always useful to know how they look at credit scores.