Previously, screening was more of a guessing game – you might not know the potential risks of prospective residents until after they hit your delinquency. As a result, in 2015, AMLI Residential decided to look at testing to see what areas they previously hadn’t captured.
With the information AMLI Residential could deliver, TransUnion devised an innovative solution to provide retroactive analyses throughout the year. For the test, AMLI Residential provided prospective screeners with data containing 13,000 depersonalized applicants who applied within the previous year to determine the outcome of their lease. This enabled a side-by-side analysis to see which provider delivered the best decisions for their pool of applicants.
The test is still ongoing and AMLI is looking to evaluate the results in the following three buckets:
- Approved applicants who moved in then moved out while still owing large balances could have originally been denied, if the provider had used data to foresee the same pattern. (This could potentially provide a financial benefit.)
- Applicants a provider suggested be denied, but AMLI Residential overrode, ended up having positive outcomes. (This would save AMLI’s staff time to research and override.)
- Applicants suggested to be declined by the provider who never moved in, but had no eviction or collection records on their credit report a year later. (These would potentially reduce the financial benefit.)
These results indicated that some outcomes could have been predicted if the data had been used at the onset of the process. Utilizing the data did aid AMLI Residential in ultimately selecting a screening provider. In addition, testing helped spark the notion that providers should be screening in a more analytical way.