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Rate Loan Risk Category

April 2021

financedmn

Bruce Silver published a decision model that rates a loan application’s Risk Category from summary data: the loan amount, the loan-to-value ratio (LTV), and — for each borrower on the loan — a debt-to-income ratio (DTI) and a credit score. His model expresses the underlying logic as a DMN boxed context that combines these per-borrower and loan-level figures into a single overall risk category.

Implement (or reproduce) this decision model using your favorite Decision Modeling tool.

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