Figure 1 -
Configuration options for the Tenant Scorecard
The configurable screening criteria for the Tenant
Scorecard include credit scores, income to rent ratio, income to
debt ratio, income to debt including rent ratio, delinquent
accounts, collection/charge off accounts, and bankruptcy records
(see Figure 1). A text box for entering the additional condition
for conditionally approved applicants is also accessible. To
enable a screening element for use in the Tenant Scorecard,
place a check in the checkbox next to it. The pass/fail
thresholds are prepopulated with average values, but should be
modified according to the specific needs of the property.
For all criteria, numeric comparisons are made using
strictly greater than and less than logic. If the data point is
equal to the criterion, the condition will not be met. For
example, if the Credit Scores element is set to fail below 580,
and the credit score is equal to 580, the resulting
recommendation will be conditional, not fail. In this example, a
credit score of 579 or lower is necessary to generate a fail
recommendation.
Conditional Approval – The Conditional
Approval element specifies the additional requirement requested
of the applicant when the scorecard recommendation is
conditional. The additional requirement is generally a risk
mitigating factor, such as an increased security deposit.
Conditional recommendations are the result of data being equal
to or falling between the fail and the pass thresholds for a
given scoring criterion.
If no conditional range is desired, the pass/fail
thresholds should be set respectively to the desired threshold
value and the desired threshold value minus one. For example, to
eliminate the conditional range for the Credit Scores element
with a fail threshold of 580, the Fail Below value should be set
to 580 and the Approve Above value should be set to 579.
Credit Scores – The Credit Scores
element compares the average of all credit scores returned in
the credit report with the pass/fail thresholds for making a
recommendation. The checkbox labeled “Include Manual Review for
Results with No Score Records” allows two different ways to
handle “No Score” results. If the checkbox is checked and the
applicant has no credit score, a drop down menu of
recommendation values is made available so that a manual review
of the credit file can be made. For joint reports, if either or
both of the applicants have no credit score, the drop down menu
is made available (see Figure 2). If the checkbox is not
checked, any “No Score” results are ignored and are not used in
computing the average credit score.
Income to Rent Ratio – The Income to
Rent Ratio compares the quotient of the stated income and the
stated rent amount with the pass/fail thresholds for making a
recommendation. The Income to Rent Ratio indicates how much
income the applicant has in relation to the proposed rent. For
example, an Income to Rent Ratio of 1.92 indicates the applicant
earns just under two times the proposed rent amount.
Income to Debt Ratio – The Income to
Debt Ratio compares the quotient of the stated income and the
applicant’s monthly debt payment with the pass/fail thresholds
for making a recommendation. The monthly debt payment is
determined from the account history of the credit report. The
Income to Debt Ratio indicates how much income the applicant has
in relation to his or her monthly dept obligations. For example,
an Income to Debt Ratio of 6.70 indicates that the applicant
earns almost seven times his or her monthly debt payment.
Income to Debt Including Rent Ratio –
The Income to Debt Including Rent Ratio compares the quotient of
the stated income and the sum of the applicant’s monthly debt
payments and the proposed rent payment with the pass/fail
thresholds for making a recommendation. The monthly debt payment
is determined from the account history of the credit report. The
Income to Debt Including Rent Ratio indicates how much income
the applicant has in relation to his or her monthly dept
obligations combined with the proposed rent. For example, an
Income to Debt Ratio of 1.49 indicates that the applicant earns
one and a half times his or her total monthly debt payments and
the rent amount.
Delinquent Accounts – The Delinquent
Accounts element compares the total number or percentage of
qualifying delinquent tradelines with the pass/fail thresholds
for making a recommendation. The account late payment history is
determined from the credit report. The element can be configured
to consider currently delinquent accounts; accounts with
delinquencies in the past six, twelve, eighteen, or twenty-four
months; or all reported delinquencies. The element can also be
configured to ignore education/student loan tradelines as well
as medical tradelines.
Accounts with late payments that fall outside the
configured time frame or that are excluded by type are not
included in the total number of delinquent tradelines, nor are
they included in the total number of all tradelines used in
computing delinquency percentages.
If both Delinquent accounts By Total and Delinquent
accounts By Percentage are enabled, the qualifying tradeline
data must pass both the total and the percentage thresholds for
a pass recommendation. If the qualifying tradeline data fails
either the total or percentage thresholds, a fail recommendation
results. Similarly, if the qualifying tradeline data is in
between the pass/fail thresholds for either the total or
percentage thresholds, a conditional recommendations results.
Collection/Charge Off Accounts – The
Collection/Charge Off Accounts element compares the total number
or percentage of qualifying collection tradelines with the
pass/fail thresholds for making a recommendation. The account
collection or charge off status is determined from the credit
report. The element can also be configured to ignore
education/student loan tradelines as well as medical tradelines.
Accounts with a status of collection or charge off that
are excluded by type are not included in the total number of
tradelines, nor are they included in the total number of all
tradelines used in computing the collection percentages.
If both Collection accounts By Total and Collection
accounts By Percentage are enabled, the qualifying tradeline
data must pass both the total and the percentage thresholds for
a pass recommendation. If the qualifying tradeline data fails
either the total or percentage thresholds, a fail recommendation
results. Similarly, if the qualifying tradeline data is in
between the pass/fail thresholds for either the total or
percentage thresholds, a conditional recommendations results.
Bankruptcy Records – The Bankruptcy
Records element considers bankruptcy records within the
configured time frame. Bankruptcy records are determined from
the public records section of the credit report. One or more
qualifying bankruptcy records results in a fail recommendation.
Review Criminal Records Searches – If
the Include Manual Review for Criminal Records Searches element
is checked, a drop down menu of recommendation values may be
made available to allow a manual review of the applicant’s
criminal record search results. The drop down menu is only made
available if the applicant’s file includes a County Criminal
Records, InstaCriminal Statewide, InstaCriminal MultiState,
InstaCriminal Research, or Sex Offender Records search (see
figure 2).
Review Eviction Records Searches – If
the Include Manual Review for Eviction Records Searches element
is checked, a drop down menu of recommendation values may be
made available to allow a manual review of the applicant’s
eviction record search results. The drop down menu is only made
available if the applicant’s file includes an Eviction Records
or InstaEviction Records search.
Review Residential Verification – If the
Include Manual Review for Residential Verification element is
checked, a drop down menu of recommendation values may be made
available to allow a manual review of the applicant’s
residential verification. The drop down menu is only made
available if the applicant’s file includes a Residential
Verification.
Review Employment Verification – If the Include Manual
Review for Employment Verification element is checked, a drop
down menu of recommendation values may be made available to
allow a manual review of the applicant’s employment
verification. The drop down menu is only made available if the
applicant’s file includes an Employment Verification.
Processing the Tenant
Scorecard
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Figure 2 - Scorecard recommendations
based on a credit report with no credit score; 9 tradelines, one
of which is delinquent; and monthly debt payments totaling $358.
The Tenant Scorecard analyzes the credit report and makes
recommendations for each of the enabled screening criteria based
upon the configuration settings. An overall composite
recommendation is also made by combining each of the individual
recommendations. One or more criteria with a fail recommendation
will result in an overall fail recommendation. Similarly, one or
more criteria with a conditional recommendation, in the absence
of any fail recommendations, will result in an overall
conditional recommendation. If there are no criteria with either
a fail or conditional recommendation, the result is an overall
pass recommendation.
Manual Review – Any screening criteria for which an
automated recommendation cannot be made will instead have a drop-down menu with the option to select pass, fail,
conditional, or N/A. When enabled in the scorecard
configuration, this manual review results for the Credit Scores
element when the credit report does not contain a score. It also
results for any report containing an investigative criminal
search, investigative eviction search, residential verification,
or employment verification when configured for manual review.
The overall recommendation is recomputed each time a manual
review drop-down is changed.
Decision – Once all screening criteria have been
considered, a decision must be made with regards to the
applicant. A drop down menu with the options to
decline,
approve, or approve with conditions is provided for this
purpose. A field for any comments or notes that should be
visible on the final report is also available (see Figure 2).
After selecting the appropriate decision from the drop down
menu, the product is completed by selecting the Complete button
located at the bottom of the Tenant Scorecard editor page. The
Tenant Scorecard is now completed and will be visible on the
consumer report.
If you want to see a demo of TenantScoreŽ,
just call us at 1 800 277-2733.
