Quarter/MRE-module
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Add minimum mre value

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This commit is contained in:
Chris Diesch 2025-04-08 19:43:39 -06:00
parent ce94312099
commit f07e0a086a
1 changed files with 2 additions and 0 deletions
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2
__init__.py
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@ -5,6 +5,7 @@ GROSS_RENT_YIELD: float = 0.03686
RISK_POOL_ALLOCATION: float = 0.01
LOSS_SEVERITY: float = 0.19
RECOVERY_RATE: float = 0.9
MIN_MRE: float = 0.05
def get_default_risk_by_fico(consumer_fico: int, loan_to_value: float) -> float:
@ -107,6 +108,7 @@ def compute_mre(home_value: float,
mre += at_risk_value - recovery_value
# make the mre a percentage of the home value
mre /= home_value
mre = max(mre, MIN_MRE)
return mre