Announcing Income Analytics
When lenders, property managers, and other businesses make decisions today, understanding how much money an applicant earns may not tell the complete story—an applicant's current income is only a single data point in the grander scheme of an applicant's earnings. Lenders are really trying to assess the risk of the applicant being unable to repay a loan in the future so that they can price the risk appropriately.
And as some loan terms trend longer due to inflation and the income volatility of the American population continues to rise, understanding how an applicant's income may change over time and the consistency of that income stream can help lenders make the most informed decisions.
We've developed Income Analytics to allow lenders and property managers to go beyond top-level data, automate income calculations, and get more insight into an applicant's financial health. Income Analytics provides a set of calculated data points derived from Truework-verified income data to help businesses better manage risk and make more precise decisions.
Get more insight into past and future trends for applicant income
For applicants verified by the Truework Pre-approval, Instant, or Credentials verification methods, the following insights are now available as an add-on:
- Annualized Income: A normalized calculation of what an applicant’s income would be for a whole year based on an observed period.
- Income Stability: Understand the variability in monthly income for the past year as an indicator of the applicant's ability to repay.
In action: how businesses can incorporate Income Analytics into their loan workflows
Income Analytics can be used alongside verified income data to more accurately underwrite and price loans and evaluate applicants for rentals. Here's how:
- Increase conversion by giving the best rate possible: With competition in the market, offering the most competitive loan package can make a difference in winning business. If past income is stable, lenders could change an applicant's credit grade and offer a lower rate.
- More confidently grant loan policy exceptions: With additional data points, lenders can automate making exceptions to loan terms. If an applicant wants a lower down payment than initially approved, a stable income could provide a solid indicator to make an exception. And later in the process, steady income could also factor in granting exceptions for missed payments in servicing.
Getting started
Annualized Income and Income Stability are available via API as an add-on to the Truework Pre-approval, Instant, and Credentials offerings. They are included in Truework's FCRA-compliant consumer report. To get started, check out the documentation. These use cases are just a starting point—speak to an expert to guide you through implementation and learn how other businesses use these data points today.
Ready to learn more?
Talk to our team to learn how Truework can simplify your income verification strategy.
