As with any type of analysis, the more specifications that are available, the more detailed and customized the results can be. Multiple data elements provide much greater insight into loan performance and the characteristics that identify the most desirable borrowers.
For example, understanding the risks posed by a wide range of income levels means deals can be more appropriately structured to mitigate those risks. Incorporating that data with traditional credit scores allows deals to be customized further to give a more holistic view of the borrower.
Combining additional segmented data on pay frequency, tenure and job disruption means gaining even further insight into the financial status of individual borrowers. This introduces the possibility of eliminating stipulations, offering more refined terms and improving underwriting efficiency.
Download Equifax’s white paper, Trust But Verify, to learn more about how the Work Number data can help you better predict loan performance.
