Proprietary Model Analyzes Hundreds of Data Points to Create More Equitable Scores
LOS ANGELES, Dec. 5, 2023 /PRNewswire/ -- Leap Analytics, Inc. (Leap), a fintech real estate investment company, today announced it has developed a credit-scoring model that incorporates machine learning to achieve more rigorous data analysis than traditional models. The goals of the Leap model are to better predict credit risk while creating more equitable and accurate scores for all Americans, particularly where homeownership is concerned.
Leap's credit-scoring solution analyzes hundreds of consumer data points, including real-time, consumer-approved data, in addition to past payment history from multiple sources, to create a more comprehensive assessment of a homeowner's ability to repay debt.
"Traditional credit scoring models were developed decades ago to assess historical patterns in a homeowner's ability to pay," said Ashley Bete, Leap's Founder and CEO. "That's a backward-looking analysis that can put some borrowers at a disadvantage. Our new model promotes financial inclusion by better predicting consumer behavior and identifying those who responsibly manage credit but are overlooked due to the limitations of traditional scoring models, such as FICO."
Leap utilizes real-time, consumer-permissioned data, including cash flow, utility data, asset-level data such as home equity and trend analysis, as well as public records, to formulate a more accurate picture of an individual's future credit risk. Conversely, most lenders in the consumer credit marketplace only rely on FICO and a few other variables. Leap's model helps consumers leave their past behind while reflecting a fiscally responsible present and financially stable future.
"Leap seeks to empower historically underserved communities to help close the wealth gap by transforming the home finance marketplace through innovative solutions like our new credit-scoring model," continued Bete. "U.S. home equity is a $19 trillion market and the leading wealth generator in the country. And as the cost of home equity lines of credit rise with the increase in interest rates, products like Leap's Home Equity Agreements (HEAs) provide a more affordable way to unlock home values to address pressing financial needs."
About Leap
Leap Analytics, Inc. is a fintech real estate investment firm whose mission is to leverage innovative technology and institutional real estate expertise to empower underserved communities, transform the home finance marketplace, and help close America's housing and wealth gaps. The company provides purpose-built Home Equity Agreements (HEAs), and housing-related education to improve homeowners' financial literacy and wellness. Leap utilizes advanced technology to remove bias from the HEA application process and to expedite applications. The company is headquartered in Los Angeles, California.
Please visit www.Leaphea.com for more information on Leap HEAs, and educational resources regarding the mortgage industry and homeownership. Follow Leap on social media: LinkedIn, Twitter, Facebook and Instagram.
Media Contacts
Donald Cutler/ Lorene Yue
Haven Tower Group
424 317 4864 or 424 317 4854
dcutler@haventower.com or lyue@haventower.com
SOURCE Leap Analytics Inc.
