Experian unveiled an income model this week to help lenders comply with the Federal Reserve’s amendment to Regulation Z (Truth in Lending) of the CARD Act. The amendment requires credit card issuers to judge borrowers’ ability to pay individually rather than relying on household income.
Income Insight W2 joins Income Insight as two products Experian now offers to support various regulatory obligations, as well as the overall underwriting and risk assessment process, according to a company release.
“Both of our models estimate an individual’s income based on an individual’s credit report,” says Brannan Johnston, vice president of income and assets at Experian. “Income Insight W2 estimates wages, while Income Insight estimates total income - including wages, investments, rentals and other income.
Both Income Insight and Income Insight W2 were developed from a database of verified income and built on proprietary credit attributes.
