Adjusted residual income is money that would be left over if discretionary (optional) spending were reduced modestly. We don’t want to penalize people for spending money that is theirs to spend, but we want to recognize that could easily be redirected to make loan payments if needed.
- General FAQs
What is adjusted residual income?
What aspects of RIKI™ will change with further research?
What values does RIKI™ impose on borrowers’ behavior?
Does FormFree’s analysis make behavioral or demographic models of borrowers?
Does FormFree’s analysis use machine learning?
Does FormFree’s analysis use artificial intelligence?
Where does FormFree get the data to compute residual income and RIKI™?
Why aren’t residual income and RIKI™ reported for all borrowers?
Is RIKI™ affected by FICO score, location, home ownership, rent history (etc.)?
Why does FormFree’s software classify transactions?
What information goes into residual income and RIKI™ calculation?
What is discretionary spending?
What is residual income?
How does FormFree measure ability to pay?
What is ability to pay?
Does RIKI™ replace other measures?
What is RIKI™?