Recent FDIC reports have highlighted the stability and growing profitability among the nation’s financial institutions. In examining (2) key measures of asset quality (net charge-off rates as a percent of loans) and profitability (ROA), the data suggests both measures have stabilized for commercial banks since the financial crisis.
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In fair lending analysis, one of the most common comparisons is to examine loan files based on race or ethnicity. These classifications are often misunderstood and can be confusing. This is because race and ethnicity are two different things.
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Lending fees represent a major area of risk among forms of fair lending discrimination. In this article, we explore a fair lending analysis of fees.
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In this series of posts, we address types of fair lending discrimination that are commonly recognized by the regulatory and enforcement agencies. The points covered are risk areas that are often examined in the course of regulatory reviews. Today’s entry will cover the unfair practice known as “steering.” It is critical to bear in […]
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After being at record lows for nearly a decade, the Fed has raised interest rates three times in the past fifteen months. Although the current rate of 1% is still historically low, the rate environment has been static up until December of 2016.
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In an upcoming series of posts we address types of fair lending discrimination that are commonly recognized by the regulatory and enforcement agencies.
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In our previous post, we addressed a few frequently encountered issues when using regression methods to conduct a fair lending analysis.
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Evaluating loan application outcomes (approval or denial) in the context of fair lending is referred to as an “underwriting analysis.” Regression modeling is commonly employed in such analyses.
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The FDIC recent released its Winter 2016 edition of Supervisory Insights. This edition was focused on credit risk trends.
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In our previous post, we started introducing the concept of statistical significance. We began with making two important points. First, statistical methods are applied in order to estimate or measure an unknown. A sample of data is analyzed which is then used to draw conclusions about a larger population. This is known as statistical inference. […]
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