Model Specification Issues in Fair Lending Regression Analysis
A fundamental assumption in fair lending regression analysis is that the model is correctly specified and contains all the relevant variables.
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06Jul2017
29Jun2017
Model Specification Issues in Fair Lending Regression Analysis Omitted Variables
Regression analysis is a powerful tool for assessing fair lending risk and performance. As is the case with any tool, however, it must be understood and used correctly. This includes understanding the limitations which in turn defines what conclusions can be drawn from an analysis.
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27Jun2017
Handling Special Case Loan Applications in Fair Lending Regression Analysis
When preparing to conduct a fair lending regression analysis, the first step is to determine the loan sample to be analyzed. This is usually accomplished by first selecting a particular loan product on which to focus and a time period.
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22Jun2017
How Will Rising Interest Rates Affect Bank Profits?
The Fed has increased interest rates 3 times now since December of 2015 resulting in an increase in the Fed Funds Rate of 75 basis points. As rates have been low for a long period of time, the spread between a bank’s cost of funds and the interest rates charged on loans has been […]
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21Jun2017
Recent Fed Economic Report Indicates Increases in Consumer Delinquencies U.S Bank Stocks Continue to Underperform
A recent economic report from the New York Federal Reserve indicates that loan payment delinquencies for household debt reflected increases in the first quarter of 2017.
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15Jun2017
Understanding the Limitations of Fair Lending Regression Analysis
As we have discussed in previous posts, fair lending regression analysis has become widely used for evaluation of lender practices. While a comprehensive discussion on the subject is unnecessary certainly beyond a blog post, it is important to understand limitations when such analyses are applied to such a critical issue as fair lending.
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13Jun2017
Balancing the Community Reinvestment Act and Other Fair Lending Regulations
A tension exists between a bank meeting its CRA obligations and compliance with other fair lending laws and regulations. This can sometimes present a bank with conflicting priorities.
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08Jun2017
Managing Data for Fair Lending Underwriting Analysis for Community Banks (Part 2 of 2)
In the second installment of this two-part post, we provide some guidance concerning data for fair lending underwriting analysis in the community bank space.
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06Jun2017
Managing Data for Fair Lending Underwriting Analysis for Community Banks (Part 1)
In Part 1 of this two-part post, we discuss some issues with conducting fair lending underwriting analysis for community banks: challenges which are becoming more acute with the regulatory emphasis on quantification.
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01Jun2017
A Look at the Future of the U.S. Labor Force to 2060
The Bureau of Labor Statistics has published an interesting study forecasting the future of the U.S. labor force over the next 50 years.
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