Case Study: Regression Analysis Conducted In Response to a Regulatory Inquiry

This case study details a fair lending review conducted by Premier Insights, Inc. for The Bank, analyzing loan application data to assess discriminatory lending practices. The analysis, submitted to the FDIC, involved statistical modeling of factors such as credit score, debt-to-income ratio, and loan-to-value ratio. The findings revealed no evidence of disparate treatment based on race, indicating that loan decisions were primarily based on objective, credit-worthiness criteria. Regression analyses confirmed the significance of these objective factors in determining loan approvals and denials, further supporting the absence of discriminatory practices. All data and code were provided to the FDIC.