Using Regression to Enhance Fair Lending Underwriting CFRs

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 selecting comparators.”

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June 28th, 2016|