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Announcing Income Analytics

Better manage risk and make more precise lending decisions with added insight into an applicant’s income

Molly Hayes
Director of Product Marketing
Published
November 15, 2022
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When lenders 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 to go beyond top-level data 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 lenders better manage risk and make more precise lending decisions.

For applicants verified by the Truework Pre-approval or Instant verification methods, the following insights are now available as an add-on:

  • Projected Income: A forecast of an applicant's income in 12 months to better understand potential performance and health. 
  • Income Stability: Understand the variability in monthly income for the past year as an indicator of the applicant's ability to repay.

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In action: how lenders can incorporate Income Analytics into their loan workflows

Income Analytics can be used alongside verified income data to more accurately underwrite and price loans. 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 an applicant's income is projected to increase or past income is very 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 the process of making exceptions to loan terms. If an applicant would like 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

Both Projected Income and Income Stability are available via API as an add-on to the Truework Pre-approval and Instant offerings and 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 lenders are using these data points today.

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