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But the straw borrower issue could be even larger in scope than these tens of thousands of suspicious instances.
Point Predictive found 65,000 instances of co-borrowers removed between one and 30 days after the initial application, chief fraud strategist Frank McKenna told Automotive News.
“So the number is far higher as we expected,” McKenna wrote in an email. “Almost 100 percent higher.”
Another Point Predictive analysis found the average co-borrower removal situation in 2021 started with an application involving a primary borrower with a FICO score of 617 and a co-borrower with a credit score of 546. The second application is resubmitted an average of five days later with the co-borrower absent.
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