As the economic damage caused by the Covid-19 pandemic continues to deepen, declining credit scores could make it harder for consumers and small businesses to access the credit they need to ride out and rebuild from the crisis. Although Congress adopted new protections in March, stakeholders are deeply divided over whether additional action will be needed in the face of what may be a protracted and uneven recovery.
This Research Brief is the first in a series of publications intended to facilitate post-pandemic adjustments to credit scoring and underwriting models to support an inclusive and rapid recovery process. It analyzes the current options under consideration for disaster-related credit reporting, as well as providing related historical and market context.
Research Brief
Click here for an update on pandemic-related credit reporting and scoring issues published in July 2020.
Click here for an October 2020 update on the use of non-traditional data for credit scoring and underwriting in response to the pandemic recession and racial justice movements.