System and Method for Income Risk Assessment Utilizing Income Fraud and Income Estimation Models

1 . A method of income validation and evaluation for income risk assessment, the method comprising:

receiving a borrower loan request including a plurality of borrower data selected from the group consisting of: an employment type code, a borrower date-of-birth, a borrower zip code and a stated monthly income;

analyzing the received plurality of borrower data with respect to a stored plurality of borrower data to generate a normalized plurality of borrower data;

implementing, if the stated monthly income is non-zero, an income fraud model utilizing at least the normalized plurality of borrower data including the employment type code, the borrower date-of-birth and the borrower zip code to determine an income fraud score based on the normalized plurality of borrower data;

implementing an income estimation model utilizing at least the normalized plurality of borrower data and an age-band to determine a predicted income; and

determining a risk assessment value as a function of the income fraud model and the income estimation mode.

2 . The method of claim 1 , wherein the risk assessment value comprises a high risk value, a medium risk value and a low risk value.

3 . The method of claim 1 , wherein the received borrower loan request is provided in a structured data format.

4 . The method of claim 1 , wherein the age-band is a five (5) year age range determined to no exceed the borrower date-of-birth.

5 . The method of claim 1 further comprising:

determining, if the stated monthly income is non-zero, an income deviation as the difference between the predicted income and the stated monthly income.

6 . The method of claim 1 further comprising:

determining a confidence interval based on the normalized plurality of borrower data.

7 . The method of claim 7 , wherein the normalized plurality of borrower data include a job title.

8 . The method of claim 7 , wherein determining a risk assessment value further comprises determining a risk assessment value as a function of the confidence interval.

9 . A system of income validation and evaluation for income risk assessment, the system comprising:

a computer-processor in communication with a memory device, wherein the memory device is configured to store computer-processor executable instructions to:

store a borrower loan request in at least a portion of the memory device, wherein the borrower loan request includes a plurality of borrower data selected from the group consisting of: an employment type code, a borrower date-of-birth, a borrower zip code, an age-band and a stated monthly income;

standardize the plurality of borrower data with respect to an aggregate plurality of borrower data stored in at least a second portion of the memory device;

implement an income fraud model utilizing at least the standardized plurality of borrower data to determine an income fraud score;

implement an income estimation model utilizing at least the standardized plurality of borrower data to determine a predicted income as a function of at least the age band; and

determine a risk assessment value as a function of the income fraud model and the income estimation mode.

10 . The system of claim 9 , wherein the income fraud model is implemented when the stated monthly income is determined to be a non-zero value.

11 . The system of claim 9 , wherein the risk assessment value represents one of: a high risk category, a medium risk category and a low risk category.

12 . The system of claim 9 , wherein the borrower loan request is received via a communication module in communication with the computer-processor and the memory device.

13 . The system of claim 12 wherein the borrower loan request is provided in a structured data format.

14 . The system of claim 9 , wherein the predicted income is determined as a function of the age-band.

15 . The system of claim 9 , wherein the age-band is a five (5) year age range determined to no exceed the borrower date-of-birth.

16 . The system of claim 9 , wherein the memory device is further configured to store computer-processor executable instructions to further comprising:

determine, if the stated monthly income is non-zero, an income deviation as the difference between the predicted income and the stated monthly income.

17 . The system of claim 9 , wherein the memory device is further configured to store computer-processor executable instructions to further comprising:

determine a confidence interval based on the normalized plurality of borrower data.

18 . A method of income validation and evaluation for income risk assessment, the method comprising:

analyzing a received plurality of borrower data with respect to a stored plurality of borrower data to generate a normalized plurality of borrower data,

wherein the received plurality of borrower data includes a plurality of borrower data selected from the group consisting of: an employment type code, a borrower date-of-birth, a borrower zip code and a stated monthly income;

implementing, if the stated monthly income is non-zero, an income fraud model utilizing at least the normalized plurality of borrower data to determine an income fraud score based on the normalized plurality of borrower data;

implementing an income estimation model utilizing at least the normalized plurality of borrower data and an age-band to determine a predicted income; and

determining a risk assessment value as a function of the income fraud model and the income estimation mode.

19 . The method of claim 18 , wherein the risk assessment value comprises a high risk category, a medium risk category and a low risk category.

20 . The method of claim 18 , wherein the age-band is a five (5) year age range determined to not exceed the borrower date-of-birth.