LOGIT
MONITORING™ and
CREDIT PRICE
MONITORING™ for
SMALL BUSINESS
Description
Preiss&Associates'
Logit Monitoring™
and Credit Price
Monitoring™ services
help financial
institutions examine
their small
business loan
portfolios for
possible disparate
treatment issues
with respect to the
credit granting
decision process and
the credit pricing
decision process.
Logit Monitoring™
uses logistic
regression, a
specialized form of
multiple regression
analysis, to assist
institutions in
identifying possible
differential
treatment issues in
the small business
credit granting
process employing
the same procedures
the federal
regulators use when
they perform their
fair lending exams.
Similarly, Credit
Price Monitoring‘
assists institution
in identifying
possible credit
pricing issues in
their small business
loan portfolios.
Uses
-
Tests for
unintended
differential
treatment in the
credit granting
or pricing
processes for
the
institution’s
small business
loan portfolio.
-
Identifies
application
files that need
to be manually
reviewed to
assure the
proper file
documentation to
justify the
credit decision
made or validate
the interest
rate charged.
-
Assures
consistency in
the credit
granting or
credit pricing
decisions across
the institution.
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.
-
Screens 100% of
small business
files
statistically,
not just a
sample.
-
Reviews only
those files may
be problematic,
not a random
sample of the
loan portfolio.
-
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.
