Denial Disparity Index by State
What is a "Denial Disparity Index"? The TruPoint Denial Disparity Index (DDI) is the rate of denials of the "Control Group" (all white, non-Hispanic, male applicants) relative to the rate of denials for the the "Prohibited Basis or Target Group" (all other racial, ethnic and gender applicants). If the Control Group has a lower denial rate relative to the Target Group, the Denial Disparity Index will have a value greater than one (1). Any DDI substantially greater than one (1) is an indication of possible disparity between the Control Group and the "Prohibited Basis" or Target Group.
Using the Federal Financial Institutions Examination Council's (FFIEC) Home Mortgage Disclosure Act (HMDA) data loan data for 2010, TruPoint Partners has calculated the Denial Disparity Index (DDI) for each state in the US. These state averages can be used as a benchmark when reviewing an individual institution's denied loan applications. Determining your institution's Denial Disparity Index is important to conducting a thorough fair lending review.
Do you know your Denial Disparity Index? If not, TruPoint Partners can help. See how your institution compares to the state averages. It is FREE and yours for the asking! Click FREE Denial By Race Report to request yours today!
2010 State HMDA LAR Denial Disparity Indexes- Click Your State's Icon to View