To estimate discretionary spending, transactions are classified as far as possible into broad categories such as groceries, utilities, and entertainment. This classification is also used in other aspects of FormFree’s analysis, such as verification of employment.
- General FAQs
Why does FormFree’s software classify transactions?
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.)?
What information goes into residual income and RIKI™ calculation?
What is discretionary spending?
What is adjusted residual income?
What is residual income?
How does FormFree measure ability to pay?
What is ability to pay?
Does RIKI™ replace other measures?
What is RIKI™?