Mastering Machine Learning with Spark 2.x

Loan status model

The first model needs to distinguish between bad and good loans. The dataset already provides the loan_status column, which is the best feature representation of our modeling target. Let's look at the column in more detail.

The loan status is represented by a categorical feature that has seven levels:

• Fully paid: borrower paid the loan and all interest
• Current: the loan is actively paid in accordance with a plan
• In grace period: late payment 1-15 days
• Late (16-30 days): late payment
• Late (31-120 days): late payment
• Charged off: a loan is 150 days past the due date
• Default: a loan was lost

For the first modeling goal, we need to distinguish between good and bad loans. Good loans could be the loans that were fully paid. ...