Agency Statement Regarding Supervisory Guidance and What it May Mean To Your Institution

Banking regulations contain a degree of subjectivity. Regulations are broad and pertain to the entire industry, but institutions can vary significantly in operations and size even within the subsets of rules that apply to each. Practically speaking, this often leaves the examination process subject to interpretation in terms of what is compliant and what is not.

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Fair Lending Statistics 101: How Distributions Are Used in Fair Lending

This is the second video in our series reviewing statistical concepts that are fundamental to fair lending analysis. In the first part of the series, we described a distribution as an approximation of a histogram of data. In this video, we explore how we use our knowledge of distributions in fair lending. Specifically, we explain why [...] Read More

Achieving CECL Compliance in One Easy Lesson

We have discussed the essentials of CECL in a previous post in which we explained the new requirements. Below we show a simple path toward CECL compliance which may serve as a catalyst toward more refined and robust methods.

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Fair Lending Statistics 101: What is a Distribution?

Fair lending analysis is becoming increasingly technical, which means a basic understanding of statistics is becoming increasingly important. This video is the first in a series of videos aimed at refreshing your memory on - or perhaps teaching you for the first time - statistical concepts that are fundamental to fair lending analysis. We begin [...] Read More

Treasury Report Promotes Use of Innovation & Technology in Financial Industry

In response to an executive order signed by President Trump on February 3, 2017, the U.S. Department of the Treasury released a series of reports. These reports identify government policies that promote or inhibit regulation of the U.S. financial system in a manner consistent with the administration’s stated Core Principles. The most recent of these reports, […]

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The Fair Lending Risk of Good Intentions

Fair Lending laws and regulations prohibit discrimination on prohibited bases, including race, gender, age and ethnicity.

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FDIC Publishes Nostalgic Issue of Consumer News in Commemoration of 25 Years

Initially published in 1993, the FDIC Consumer News newsletter is celebrating 25 years of publication. 

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Understanding What is Not in the Data: A CECL Illustration

In our last post, we discussed the importance of understanding both what is and what is not included in the data for regression analysis. In this post, we further emphasize this point with an illustration relevant to a common CECL methodology – the probability of default/loss given default method (PD/LGD).

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What the Data is and is Not

The first and most important step of any quantitative analysis is understanding what the data consists of. This, unfortunately, is many times ignored in econometric analyses.

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Leveraging CECL To Enhance Efficiency and Profitability

The new CECL standards fundamentally change the allowed loan and lease loss (ALLL) calculation for GAAP-reporting institutions. 

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