CREDIT DECISION MONITORING™ & CREDIT PRICE OVERRIDE MONITORING™

Description

Preiss&Associates' Credit Decision & Credit Price Override Monitoring™ services help financial institutions monitor their automated underwriting systems for credit decision and credit price overrides. Overrides are part of the automated underwriting and loan pricing process and occur when the actual credit or pricing decision is contrary to the decision recommended by the automated underwriting system or pricing decision system. Preiss&Associates analyzes both highside and lowside overrides. From the regulators’ perspective the existence of overrides causes fair lending concerns since the potential exists for perceived discrimination if the pattern of overrides appears to indicate disparate treatment.

Uses

• Tests overrides for unintended differential treatment in the credit granting or pricing processes for an institution’s selected credit portfolios.
• Identifies the type and volume of overrides.
• Assures consistency in the credit granting or credit pricing decisions within an institution.
• Compares highside denials from protected groups (overrides) with control group approvals and lowside approvals from non-protected classes (overrides) versus protected class applicants that were not overridden.

Benefits

• Uses statistical expert to do analysis like the regulators.
• Increases productivity through easy to use custom reports; avoids data management, learning and technical concerns.
• Protects the integrity of credit scoring models.
• Promotes consistency in the automated credit decision/pricing processes.
• Identifies problematic files on a timely basis: quarterly, semi-annually, annually.

Staff and Business Qualifications

• Ph.D. in Economics with specialization in econometrics.
• Post-doctoral work at Wharton Econometric Forecasting Associates in Philadelphia, under Nobel Laureate Lawrence Klein.
• Combination of unique technical skills and practical business experience sets Preiss&Associates apart from competitors.

For more information and a full discussion of your requirements, please contact Preiss&Associates.