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By Premier Insights

In Fair Lending, Loan Policy

Posted January 24, 2019

Looking Under The Hood: Do Your Loan Policies Need a Tune-Up?


A regulatory examination of lending activity, whether fair lending related or safety and soundness, always focuses on data. Data integrity notwithstanding (which is another blog post entirely), such data is a function of (2) things: (1) policies and (2) actual practices. The interaction of these two forces creates the lending data that will be the subject of a regulatory examination. These data, in turn, will shape the ultimate outcome of the review. 

By Premier Insights

In Fair Lending

Posted January 10, 2019

Fair Lending Pricing Risk: Is There A Storm Coming?

All of us are familiar with the term “perfect storm.”  A perfect storm can be defined as the occurrence of a highly improbable event.   In the context of the perfect storm, the event is improbable because a combination of factors or conditions have to occur or exist either simultaneously or in a particular sequence in order to produce the event.  It is the unlikely nature of the simultaneity of multiple factors or conditions that produces the “perfect storm.” 

By Premier Insights

In Fair Lending, Industry Updates

Posted December 13, 2018

FDIC Continues to Promote Bank Startups

On December 6, the FDIC announced actions to promote a “more transparent, streamlined, and accountable deposit insurance application process” to encourage the establishment of new, or de novo, banks.

By Premier Insights

In Fair Lending, Statistical Analysis

Posted November 08, 2018

Are My Fair Lending Statistical Regression Results Meaningful?

Your fair-lending regression results indicate a statistically significant disparity… now what? In our last blog post, we discussed the importance of a common-sense approach to statistical analysis. One common error in statistical analysis is to assume that a result is practically meaningful just because a result is statistically different from zero. This in not always the case. In fact, finding a statistically significant result may or may not be meaningful.

By Premier Insights

In Statistical Analysis, Fair Lending

Posted October 25, 2018

Understanding Statistical Significance

As fair lending analysis becomes increasingly technical, industry practitioners have had to familiarize themselves with the terminology of statistical analysis. Statistical significance is one of the most common and foundational concepts to successfully navigating these new waters. Moreover, it is a concept that, when misunderstood, may result in serious error.

The Importance of Sample Segmentation for Regression Analysis

One of the first questions before beginning any type of statistical analysis is what data are included and how should the sample or samples be formulated and segmented. In previous posts, we have addressed various nuances in regard to regression modeling and how the inappropriate application of regression and modeling techniques to real world issues (such as credit quality or fair lending) can have serious consequences.

By Premier Insights

In Fair Lending, Mortgage Lending

Posted March 08, 2018

Prevalence of Online Mortgage Lending & Fair Lending

The Federal Reserve Bank of New York released in February (2018) a study examining the role of technology-based residential mortgage lending. The report highlights the growth in volume of mortgage lending conducted exclusively over the internet along with other characteristics of this method of service delivery.

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