System and method for determining ability-to-repay obligation

A method, comprising:

• a. electronically receiving a query for a transaction between a borrower and a lender;
• b. receiving a plurality of data associated with the borrower, wherein the data includes debits and credits;
• c. classifying the debits as discretionary or non-discretionary expenses;
• d. adjusting the discretionary expenses by an amount based on at least one type associated with the discretionary expenses to generate adjusted discretionary expenses;
• e. computing, based on the adjusted discretionary expenses and the credits, an ability-to-pay score for the borrower;
• f. synthesizing a report comprising the ability-to-pay score for the borrower;
• and
• g. transmitting the report to the lender in response to the query.

A system, comprising:

• a. A memory that stores instructions;
• and
• b. a processor that executes the instructions to configure the processor to:
• I. electronically receive a query for a transaction between a borrower and a lender;
• II. receive a plurality of data associated with the borrower, wherein the data includes debits and credits;
• III. classify the debits as discretionary or non-discretionary expenses;
• IV. adjust the discretionary expenses by an amount based on at least one type associated with the discretionary expenses to generate adjusted discretionary expenses;
• V. compute, based on the adjusted discretionary expenses and the credits, an ability-to-pay score for the borrower;
• VI. generate a report comprising the ability-to-pay score for the borrower;
• and
• VII. provide the report to the lender in response to the query.