Other Lending Trends

Scalable Data Processing in R

Simon Urbanek

Member of R-Core, Lead Inventive Scientist, AT&T Labs Research

In this lesson ...

City vs rural
Federally guaranteed loans vs. income

City vs. Rural

City means a home is in a metropolitan area, otherwise rural
In the mortgage data set, city has msa value of 1, 0 otherwise
For a more precise definition see FHFA website

Federally Guaranteed Loans and Borrower Income

Federally guaranteed loans protect the company issuing a loan
If a lender can issue a federally guaranteed loan, then the lender is less worried about the loan defaulting as the government will buy the loan
We'll use Borrower Income Ratio: borrower income divided by median income of people in the area

Let's practice!

Scalable Data Processing in R

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