Mortgages, Consumer Loans, Home Equity Lines/Loans
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.
- 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.
- 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.