Credit Decision Monitoring

Small Bank MonitoringMortgages, Consumer Loans and Home Equity Lines/Loans

Description

Preiss&Associates’ Credit Decision Monitoring™ Service helps financial institutions examine their mortgage loan, consumer loan and home equity line/loan portfolios for possible disparate treatment or disparate impact issues in the credit granting decision process. Using logistic regression, a specialized form of multiple regression analysis, these services assist institutions in identifying possible differential treatment issues employing the same procedures the federal regulators use when they perform their fair lending exams. Depending on client preferences, Preiss&Associates performs its monitoring services with an annual, semi-annual, quarterly or monthly frequency.

Uses

  • Tests for unintended differential treatment in the credit granting process for mortgages, consumer loans and home equity lines or loans.
  • Identifies application files that need to be manually reviewed to assure the proper file documentation to justify the credit decision made.
  • Assures consistency in the credit granting decision within and across underwriting centers.

 Benefits

  • Identifies credit decision applications that may have fair lending issues
  • Matches credit decision exception applications with similarly situated applications in the loan portfolio
  • Cost effective versus manual monitoring processes
  • Statistically reviews the credit decision on all loans in the portfolio, not a sample
  • Explains the factors important in the institution’s credit decision

For more information and a full discussion of your requirements, please contact here.