SAN DIEGO, Calif., May 22, 2018 – PointPredictive, the company that solves the billion-dollar problems of auto, mortgage and retail lending fraud, announced today the release of Income Validation Alert. The solution offers a real-time predictive assessment of an applicant’s stated income. If that income appears to be overstated by 15% or more, the lender is notified so they can perform additional verification. For applicant incomes below the 15% threshold, the lender can streamline the underwriting process to ensure good loans are not impacted. With sub-second response times and high accuracy rates seen in the laboratory, PointPredictive expects the solution to have wide-reaching market usability, including pre-screening online mortgage and automotive applications; streamlining automotive application underwriting stipulations at dealers; enabling faster credit decisions for consumers; and reducing the lender’s cost of utilizing more time consuming, less accurate, and more expensive income verification solutions.
“Validating an applicant’s stated income in real-time has been an issue for lenders for many years. Traditional tools haven’t really addressed this issue well,” says Tim Grace, CEO of PointPredictive. “Employer-based database verification checks can typically verify income on only 30% of the applicant submissions, leaving 70% of stated incomes to be checked by manual processes. Verifying income directly with the borrower by requesting paystubs is often unreliable – some lenders report more than 20% of paystubs received are forged or altered. Lenders are looking for something accurate, fast and cost effective. Income Validation Alert should help immensely in this effort.”
Income Validation Alert analyzes a borrower’s stated income against millions of reported incomes and salaries from seven diverse sources. Then, using the applicant’s employer, occupation, job title, residence, and estimated years of experience, a sophisticated machine-learning model predicts the borrower’s likely income. When the borrower’s stated income exceeds what the model predicts by 15% or more, the lender is alerted to the discrepancy and can further scrutinize the borrower’s income.
What makes Income Validation Alert different than other approaches is the breadth and depth of salaries and reported incomes available to the validation process. Comparing a borrower’s stated income against seven different sources simultaneously and then using machine learning to cascade through those sources to determine the most reliable income for that borrower is a groundbreaking achievement. Early results illustrate just how powerful this approach is.
“In laboratory testing with live auto lending data, we were able to successfully clear the stated income data on more than 85% of applications while successfully identifying more than 80% of the applications with known, overstated incomes,” advised Greg Gancarz, Ph.D. Data Scientist with PointPredictive. “This level of detection is clearly a breakthrough in helping lenders identify one of their biggest pain points – knowing which applications require detailed income verification.”
Income Validation Alert is available to banks, lenders and card issuers to verify stated income on applications. The service is available today for real-time integration into loan origination and underwriting workflows.
For more information on Income Validation Alert from PointPredictive, please contact [email protected] .