In LR, I have a new primary market rule as such:
term = 36
LR score = 13 and above
My estimate says: 14% +/- 7.1% return for 44 loans, total of $1100 available.
Now, consider this primary market rule:
term = 36
Highest LR Score = Top 2%
My estimate says: 9% +/- 4.7% return for 47 loans, total of $1175 available.
Why are these return estimates so different? How are these 44 vs 47 loans not more or less the same loans?