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Research case study

Mortgage Default Prediction

Default prediction modeling for mortgage risk.

Focus

Python · XGBoost

Methods

SHAP · Risk

Repository

View source on GitHub for Mortgage Default Prediction (opens in a new tab)

01 / Context

The research question

How accurately can we predict mortgage defaults using loan-level characteristics, and which features drive risk?

02 / Method

Research design

Built a classification pipeline with Logistic Regression, Random Forest, and XGBoost on loan-level data with feature engineering for LTV, DTI, and credit history.

03 / Evaluation

How it was tested

  • Loan-level data, temporal train/test split by vintage
  • Metrics: AUC, precision-recall, SHAP feature importance

04 / Findings

What the work showed

In the reported temporal holdout, XGBoost ranked strongest among the tested models and SHAP highlighted LTV and credit score as leading drivers.

05 / Next iteration

Where I would take it next

Incorporate macroeconomic covariates (unemployment, HPI) and test on out-of-sample vintage cohorts.