What is VERO's Document Analyzer?

The Document Analyzer uses Document Service OCR to take uploaded financial documents and scan them to identify type, extract income verification data, and assess for fraud signals.

When applicants, or managers on behalf of applicants, upload W-2s, Paystubs, Bank Statements, and 1099s to VERO, Document Service OCR first scans the document to classify it into it's type (i.e. W-2), then captures the data from the document, and using that data checks for fraud signals and completes income analysis, through a combination of machine learning, computer vision, and human validation in the event of uncertainty.

To read more about fraud indicators, check out this article.

Requirements for Document Service OCR

• Accepted File Types: JPEG, PNG, PDF, BMP, GIF, and TIFF

• Maximum File Size: 5mb

• Document must be in English: documents in other languages cannot be processed

• Password protected documents cannot be classified, scanned or extracted

• Must be "Visible to Renter": either by being uploaded by the applicant or by the manager with the "Visible to Renter" toggle ON.

How is income verified by uploaded financial documents?

Document Verified Income involves identifying an Active Income Stream, which is done by running the documents through Document Service OCR to classify the documents and pull several data pieces, like pay frequency and amount, and complete calculations to create an income output.

There are 3 ways that income can be verified through documents alone: W2+Paystubs, Paystubs Only, and 1099s. Soon we'll be adding the ability to verify documents with Bank Statements.

How is Document Verified Income calculated?

W-2 + Paystubs:

The Document Analyzer will use the three or more provided paystubs if the period to calculate the number of pay periods per year and the average payment amount. It will multiply these together to calculate the annualized income stream.

If the paystubs provided do not cover at least 21 days, it will no conduct the above calculation and instead will use Box 1 of the W-2 to determine the annualized income stream.

Paystubs Only:

The Document Analyzer will gather all available paystubs, up to the last year and then using those calculate the number of pay periods per year and the average payment amount per pay period. It will multiply these together to calculate the annualized income stream.

To be considered an Active Income Stream, the most recent paystub must fall within a certain number of days from the current date, depending on the calculated pay frequency. This is called the lookback period. You can find details on the lookback period by pay frequency below:

If the most recent paystub is outside of the lookback period, the income stream will be considered inactive until a more recent paystub within the lookback period is added.

Bank Statements Only:

The Document Analyzer will gather all available bank statements, up to the last year and review transactions to identify and calculate an annualized income stream.per pay period. It will multiply these together to calculate the annualized income stream.

In order to identify the income stream from Bank Statements, the following requirements must be met:

This process can be repeated for groups of bank statements to generate multiple income streams from financial documents.

To calculate the income stream, the Document Analyzer will calculate the pay frequency from the deposit transaction dates and the average deposit amount to calculate an annualized income amount.

To be considered an Active Income Stream, the most recent deposit transaction must be within one month plus the calculated pay frequency of the current date.

Example: Today is 3/18/2024 and someone is paid semi-monthly. The most recent transaction must be between today and 2/3/2024. This because one month back from today would be 2/18 and the pay frequency is 15 days, bringing the last expected transaction date to 2/3.

This is to accommodate that statements may not be available for the current month at the end of said month.

1099s:

If the current month is January or Februrary, a 1099 from either of the previous two years will be accepted. Otherwise, only a 1099 from the previous year will be accepted.

The annualized income will be calculated by the income amount on the 1099 form.

Other Documents

Documents that are not the financial document types outlined above can still be uploaded to VERO during the Upload Documents step by applicants or by managers on the Attachments tab of the applicant profile. These will not be scanned by Document Service OCR for Document Verified Income Purposes.