is now offering IncomePASS, a machine-learning AI-based solution designed to offer an assessment of a loan applicant’s stated income through a real-time clearing of validated incomes.
According to the San Diego-based company IncomePASS analyzes a borrower’s stated income against millions of reported incomes and salaries from seven sources. The system culls the applicant’s employer, occupation, job title, residence and estimated years of experience to predict the borrower’s likely income. When the borrower’s stated income is within 15 percent of the model’s prediction, the lender is alerted to proceed with the application process without additional manual income checks using paychecks or bank statements.
The company added that its solution can also predict the likelihood of default predictions. PointPredictive is positioning its solution as an alternative to The Work Number and manual reviews of financial documents.
“Traditional legacy tools are expensive and provide incomplete coverage,” says Tim Grace, CEO of PointPredictive. “Employer-based database verification checks can typically verify income on less than 30 percent of the applicant submissions, leaving 70 percent of stated incomes to be confirmed by paycheck reviews, many of which are fake paycheck submissions. Replacing these solutions with IncomePASS will enable 100 percent coverage across a lender’s portfolio and enable significantly less friction between consumers, lenders and dealers in funding loans.”