Approval Rate
The share of applications that are approved.
Definition
Approval Rate is The share of applications that are approved. Teams usually run into it when an application is being approved, held, or declined and the team has to explain why.
What makes it useful is that consistent decision rules reduce fair-housing risk and keep bad approvals from slipping through. The term usually sits next to documentation, score thresholds, and final reviewer notes.
Use cases
Use Approval Rate to show why an application was approved, held, or declined.
Review Approval Rate when the team needs to defend the decision against the published screening standard.
Track Approval Rate so operations can keep reviewer notes, evidence, and outcomes tied together.