LOGIT
MONITORING™ and CREDIT PRICE MONITORING™ for
SUBPRIME LOANS
Description
Preiss&Associates' Logit
Monitoring™ and Credit Price Monitoring™
services help financial institutions examine
their sub-prime 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 sub-prime
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 sub-prime loan portfolios.
Uses
- Tests for unintended
differential treatment in the credit
granting or pricing processes for the
institution's sub-prime 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 sub-prime
files statistically, not just a sample.
- Reviews only those files
may be problematic, not a random sample of
sub-prime loans.
- 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.
