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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11Jul2017
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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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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25May2017
HMDA 2018: How Statistics Can Be Our Friend
For decades, banks and those of us who have been involved with regulatory compliance have objected to subjectivity that makes managing compliance matters difficult.
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23May2017
Agencies’ Use of Testers in Assessing Discriminatory Lending Practices
The CFPB recently released its report on fair lending for 2016. The report covered a number of topics related to fair lending, including a summary of their supervisory and enforcement activities. One area addressed was the use of “testers” which involves sending persons of protected and non-protected class status into branch locations to inquire about […]
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