Author Topic: Verified Income  (Read 3514 times)

ParkerWest

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Verified Income
« on: June 18, 2012, 07:09:30 PM »
I'm curious to see if anyone has any insight on whether or not loans with "verified income" perform better than loans in which the borrower does not verify it.  Right now I'm only investing in loans that have verified income, but there are a lot more to choose from without this criterion. I can't seem to find any data for this.  Can anyone point me in the right direction?

Peter

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Re: Verified Income
« Reply #1 on: June 19, 2012, 06:57:05 AM »
I'm curious to see if anyone has any insight on whether or not loans with "verified income" perform better than loans in which the borrower does not verify it.  Right now I'm only investing in loans that have verified income, but there are a lot more to choose from without this criterion. I can't seem to find any data for this.  Can anyone point me in the right direction?
I am afraid you are not going to find any good data on this. You see, in the Lending Club data download file it doesn't include any information about whether the income was verified or not. Now, we know whether in-funding loans are verified but this doesn't carry over into the full download. So there is no analysis.

I can tell you this. There was an article early last year that talked about verified vs non-verified income and the results were slightly better for unverified income. Now, there are logical reasons for this such as high credit score borrowers are less likely to have their income verified. But you should read the full article:
http://blogs.reuters.com/felix-salmon/2011/02/07/lending-clubs-loss-rate-numbers/
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

ParkerWest

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Re: Verified Income
« Reply #2 on: June 19, 2012, 01:03:22 PM »
Very interesting.  I would have thought it the other way around.  Thanks for linking the article!