Credit Price Monitoring

Mortgages, Consumer Loans, Home Equity Lines/Loans

Credit Price MonitoringDescription

Preiss&Associates’ Credit Price Monitoring™ Service examines the pricing decisions of mortgage loan, consumer loan and home equity line/loan portfolios of financial institutions. The analysis determines whether or not the difference in the frequency and magnitude of note rates, annual percentage rates, overages/underages and fees being charged protected classes of customers (as determined by their race, gender, marital status or age) versus those being charged non-protected classes of customers is statistically significant.

Uses

  • Tests for systematic differential treatment in credit pricing within the institution’s mortgage, consumer and home equity portfolios using regulator procedures.
  • Identifies particular loans that may be under-priced or over-priced.
  • Assures consistency in the entity’s pricing decisions across its customer base.
  • Performs multi-level monitoring as needed; at the company, region, branch office and/or loan officer levels.

Benefits

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

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

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