New Frontiers for Fair Lending: Race & Ethnicity-Specific Redlining Analyses
There are often game-changers in the world of regulatory risk.
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08Aug2017
28Jul2017
Loan Stratification for Conducting Fair Lending Regression Analysis
We have discussed previously some of the limitations of regression analysis and the importance of an appropriate sample. In today’s post we delve a little deeper into these issues and provide a broader perspective to amplify these points.
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25Jul2017
In the Fair Lending Crosshairs: Commercial Lending
Historically, business lending has not been the focus of fair lending reviews during bank examinations. The focus is usually on HMDA reportable applications since government monitoring information (GMI) is available and, therefore, protected and non-protected classes status is readily identifiable. How is that changing today?
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18Jul2017
Competition for the Affluent Banking Market and Disparate Impact
Commercial banks are required under the Community Reinvestment Act (CRA) to serve all segments of the communities in which they operate. This includes making loans to areas and individuals of all income levels, and particularly low and moderate income communities and persons.
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11Jul2017
White Paper Addressing Special Case Loans in Fair Lending Regression Analysis Now Available
A question that often arises in fair lending regression analysis of lender loan decisioning practices is how special case loans are handled.
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06Jul2017
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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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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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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