HMDA Portfolio Fair Lending Analysis
These reports break out into two distinct groups: (a) Portfolio Fair Lending Statistical Comparison Reports and (b) Application Potential Fair Lending Risk Comparison Reports.
The Portfolio Fair Lending Statistical Comparison Reports summarize important portfolio statistics with comparisons between minority and non-minority application "outcomes” including origination rates, denial rates and “dropout” rates. This provides the “Fair Lending big picture”.
The Application Potential Fair Lending Risk Comparison Reports identify minority applications with adverse outcomes for comparison to non-minority applications with similar characteristics but with origination outcomes or with rate spread differences. The Reports contain salient parameters such as FICO scores, debt ratio, etc. to facilitate the comparison of applications to determine if a Fair Lending violation has occurred. This allows for quick identification of any potential Fair Lending violation and comparison of the most important application variables.