Setting Screening Criteria by MSA? Here’s what you may be missing.

Amer Tadmori

We recently looked at a concentration of groupings in our home city of Denver to see what patterns we might uncover using TransUnion’s ResidentScore 2.0. Please note, in the figures below, darker means more concentrated.

In Figure 1, the areas north and east of downtown Denver have higher concentrations of scores below 550 in the latest quarter. The main areas shown in dark blue are Federal Heights and Aurora. These areas house a large medical campus and a historically high graduate student population, a group of people that typically among other factors, have thinner credit files that could potentially drive that concentration and those scores.

Figure 1: Concentration of ResidentScore 2.0 < 550

Figure 2 looks at mid-range individuals scoring between 550 and 720. This group has a strong concentration near Lakewood along Federal Boulevard, and also shows movement toward the downtown area. The important thing to notice is the distribution is quite different. If you were setting decision points at an MSA level, you may be setting them too low or too high depending on where your property is located.

Figure 2: Concentration of ResidentScore 2.0 >= 550 and <720

Interestingly, we’re seeing high concentrations of individuals with scores over 720 near downtown Denver and the surrounding suburbs. Unlike Figures 1 and 2, Figure 3 concentrations are a bit less pronounced and cover more of the metro area. This would indicate the ability to have higher decision point scoring criteria in these areas.

Figure 3: Concentration of ResidentScore 2.0 > 720

It’s important to flesh out your screening criteria to make smarter decisions and help ensure you attract the highest quality of residents. So the next time you onboard a new property in a new MSA, consider how TransUnion multi-family analytics can assist in that quest.

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