Empirical studies show clearly that, back through history, more rules-based policies
would have resulted in smaller swings in aggregate demand, and improved economic and financial performance than the Fed's actual discretionary approach.
Another possible advantage of policy by rule rather than policy by pure discretion is that rules-based policies
can prevent short-term considerations from interfering with the Fed's long-term goals.
More sophisticated users can build customized, rules-based policies
that automate how each credit application is handled and the credit limits that are assigned, providing more control over the credit attributes used and the credit limits applied.
Automated valuation models (AVM), broker price opinions (BPOs), appraisal products, fraud tools, property profile reports, photos, maps, condition reports and other collateral-risk analytics or data can be accessed separately or in concert through multiple rules-based policies
designed to fit a lender's particular business strategy, the company explained.