ADI Adviser

Using Regression to Enhance Fair Lending Underwriting CFRs

In this contribution to ADI Adviser, ADI Senior Economist Paul J. Strasberg discusses how integrating modeling results can enhance the selection of comparators for a comparative file review (CFR) in a Fair Lending analysis of underwriting. Paul demonstrates how the use of propensity score matching (PSM) "effectively removes the judgments that a lender’s compliance analyst might make when [...]

June 28th, 2016|

Analyzing Underwriting Fair Lending Risk: Dynamic Modeling of Underwriting as a Two Phase Process

In this contribution to ADI Adviser, ADI Senior Economist Paul J. Strasberg discusses the need for a dynamic analysis plan in modeling underwriting processes. Paul demonstrates how the dynamic approach is "better aligned with the process used by lenders, results in lower and well-identified high risk cases, and should be well received by regulatory authorities." In addition, [...]

September 1st, 2015|