Computer Engineering Commons^™

Modeling Mortgage Assessment With Computational Argumentation Theory And Defeasible Reasoning, Henrik Szucs

Dissertations

In the mortgage lending business of a bank, a key focus area is risk analysis, which supports the mortgage awarding process and the prediction of the risk of defaulting (repayment issues). The standard risk assessment method at most banks is a scorecard calculation. A new way of predicting the defaulting is proposed using Defeasible Reasoning (DR) and computational Argumentation Theory (AT), areas of interdisciplinary research, in the discipline of Articial Intelligence (AI). Argumentation is formalised by reasoning models which are inspired by human reasoning. For a more realistic representation AT employs DR which is a non-monotonic reasoning process, meaning that …