S6 E4: The Nuances in Credit Underwriting that Most People Miss with Frank Rotman

Frank Rotman, Chief Investment Officer at QED Investors, makes his triumphant return to the podcast to share his wisdom on all things lending. As the first Chief Credit Officer at Capital One (before this role officially existed), Frank has an incredibly rich and nuanced perspective on topics like cashflow underwriting, the value of traditional credit data vs alternative data, and payment protection insurance.  

In this conversation, Frank and Alex break down the importance of distinguishing willingness to pay for a loan from the ability to pay for a loan when assessing creditworthiness and wax poetic about what possibilities fintech might be missing out on when it simplifies the credit building down to these two characteristics.

And stay tuned because later, Alex asks Frank for his predictions for the future of fintech and financial services and Frank’s answers are unlike any other predictions you’ve heard! 

00:00:53 - From Lending to Writing: Frank's Journey

00:03:05 - The Nuance of Credit Underwriting

00:09:21 - Building Sophisticated Underwriting Models with Capital One

00:18:12 - Understanding Reg B: Equal Credit Opportunity Act Implementation

00:26:10 - Maximizing Accurate Pricing of Risk

00:29:49 - Why Companies Must Explain Declines

00:36:38 - The Unique Marvel of American Mortgages

00:49:10 - The Truth About Predatory Lending

00:55:18 - Innovating Credit and Insurance Delivery

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Follow Frank: 

LinkedIn: https://www.linkedin.com/in/frank-rotman/

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YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos

LinkedIn: https://www.linkedin.com/in/alexhjohnson

Twitter: https://www.twitter.com/AlexH_Johnson