Examiners are focusing on consumer loans. Secured and unsecured consumer lending, along with auto lending are drawing particular attention.
During your next Fair Lending exam, you can expect a request for a file of consumer loans. Each record will then be reviewed by your examiners and appended with a gender and ethnicity code. Once complete, a thorough review of interest rate and term by product type will likely be conducted with particular attention paid to female and Hispanic borrowers.
The problem is how to test for discrimination based on race, ethnicity, or gender, when you are prohibited by law from asking those very questions.
This is the very definition of “between a rock and a hard place”. This is also where every bank providing consumer loans finds itself.
The TRUPOINT Consumer Based Fair Lending Analysis focuses on the consumer loan portfolio. Provide your consumer loan data and TRUPOINT takes care of the rest.
Mirroring the process performed by Fair Lending examiners, each consumer loan record is appended with gender, ethnicity, race, and location. Once complete, all consumer loans are analyzed for interest rate and term disparity based on gender, ethnicity, and race (where applicable).
You will learn...
... of any potential lending disparities for women and Hispanics borrowers
...how your loan price and term will be viewed by examiners
...key “focal points” and what to do about them
... plus much more.
This series of consumer loan analysis reports are among our most popular and helpful to both HMDA and non-HMDA banks alike.
Request more information on Consumer based Fair Lending Analysis today.