Category: Fair Lending

Premier Insights - Fair Lending

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 […]

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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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Lenders Should be Prepared for Increased Fair Lending Pricing Scrutiny

As is the case with most things in life, the regulatory environment goes through cycles. With respect to fair lending, examinations in the past few years have emphasized issues such as loan underwriting, redlining, and steering as opposed to pricing. Part of the explanation for this is cyclical, but also because examiners have perceived pricing […]

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Fintech in the Fair Lending Crosshairs

The term “Fintech” has come to mean essentially any application of technology for delivering financial services.  More specifically, the term represents a rapidly growing space of alternative lending facilities that are outside of the traditional banking industry. This includes both consumer and, more recently, business lending.

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Proper Application of Regression for Fair Lending Analysis

For the last decade the regulatory and enforcement agencies have been increasingly using statistical methods such as regression to evaluate fair lending compliance. With the passage of Dodd-Frank and the new emphasis on modeling and quantification, there has been a fervor to apply econometric techniques to a wide array of issues in the financial industry. […]

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Managing Consumer Fair Lending Risk

An inter-agency webinar featuring “hot topics” was conducted Thursday, November 16th and included officials from the CFPB, Federal Reserve, FDIC, HUD, NCUA, OCC, and the Department of Justice. The webinar covered issues related to the new HMDA data and fair lending. Although there was nothing covered that was entirely new with regard to fair lending, […]

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Improving Lending Performance in LMI and Minority-Majority Geographies

Analysis of loan data indicates weakness in your institution’s lending activity in low-to-moderate income (LMI) and minority-majority geographies – now what? 

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Targeting the Affluent Banking Customer and Managing Fair Lending Risk

Most community banks have some type of program or programs in which they attempt to cater to the more affluent market. Since the number of people fitting this category is somewhat limited, many banks have instituted or are attempting to institute efforts to gain market share among this segment of potential bank customers.

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BISG Proxies In Fair Lending Analysis and Fund Disbursement For Remediation

There is a great deal of discussion concerning the practice of conducting fair lending analyses of non-HMDA reportable lending using proxy methods. Recall that when analyzing such data, there is no information pertaining to the race, ethnicity, or gender of the applicant.  Instead, we use a proxy, a variable that is correlated with, but not equal […]

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FFIEC Release of 2016 HMDA Marks End of an Era

The FFIEC announced last week that 2016 Home Mortgage Disclosure Act (HMDA) data for reporting institutions is now publicly available for calendar year 2016. Enacted in 1975, the Home Mortgage Disclosure Act requires lenders to report mortgage applications received during the prior calendar year.

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