Key facts
- 50% of consumers experienced income volatility in 2022, jumping to 62% in 2025.
- About 10% of Americans have some form of self-employment.
- Almost 79 million Americans have a second job.
- Checkr covers 97% of all employment for verification.
- Checkr's income employment completion rate is 75% and growing.
Felicia Lee, Head of Mortgage Solutions & Customer Success at Checkr, discussed how income volatility and rising household expenses are significantly impacting mortgage affordability, alongside interest rates. She noted that income volatility affected 50% of consumers in 2022 and is projected to rise to 62% by 2025, driven by changing employment dynamics and the prevalence of multiple jobs.
Lee explained that the increasing number of Americans relying on various income streams, including self-employment (about 10%) and second jobs (nearly 79 million), presents challenges for lenders in accurately calculating monthly income and assessing long-term stability. She emphasized that traditional verification methods are insufficient for these evolving borrower profiles.
In response, Checkr is enhancing its verification platform to accommodate diverse income types, including payroll, self-employment, and bank assets. Following its acquisition of Truework, Checkr aims to create a unified system that simplifies the borrower experience by consolidating scattered verification tools. The company now covers 97% of employment for verification, with a 75% completion rate for income and employment verification.
Lee also highlighted the need for lenders to improve profitability by making verification more efficient, affordable, and customizable. She envisions a platform that empowers lenders to control the user experience while ensuring accuracy and speed, ultimately building trust with consumers.