Indirect Auto Credit Decision Monitoring

Auto LendingDescription

Preiss&Associates’ Credit Decision Monitoring™ Services help financial institutions examine their direct/indirect auto application portfolios for possible disparate treatment 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/impact issues employing the same procedures the federal regulators use when they perform their fair lending exams on direct/indirect auto portfolios. 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 direct/indirect auto applications.
  • 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 applications in an institution’s direct/indirect auto loan portfolio that may have received differential treatment with respect to the credit decision
  • Reviews all loans, on a dealership basis if applicable, to determine if a protected basis group is being treated differently with respect to the credit decision versus a non-protected basis group
  • Monitors applications, over time and on a dealership basis if applicable, for those that seem to regularly treat protected basis applicants differently than non-protected basis applicants.

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