Assess whether a model update needs a fair-lending revalidation (27eb17)

Situation

A DOJ or CFPB monitor request for pricing files put SPCP written plan versus actual originations in front of HMDA data-quality manager in a small-business desk using a new vendor score. This Fair Lending / Examination and Notices close is a model update needs from SPCP written plan versus actual originations, and the live options are Remove access or reverse the item, Temporary compensating control, Approve a documented exception.

Decision

HMDA data-quality manager in a small-business desk using a new vendor score must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using SPCP written plan versus actual originations after a DOJ or CFPB monitor request for pricing files.

Hypotheses to test

• HMDA data-quality manager can defend Remove access or reverse the item from SPCP written plan versus actual originations after a DOJ or CFPB monitor request for pricing files in a Fair Lending challenge.
• HMDA data-quality manager cannot defend Remove access or reverse the item from SPCP written plan versus actual originations; Temporary compensating control is what the extract actually supports after a DOJ or CFPB monitor request for pricing files.
• A DOJ or CFPB monitor request for pricing files never reached the population in SPCP written plan versus actual originations — reopen intake, do not close a model update needs.
• Two facts in SPCP written plan versus actual originations after a DOJ or CFPB monitor request for pricing files conflict for HMDA data-quality manager; hold this Examination and Notices file.

Analysis required

• Test a documented exception versus a pattern a small-business desk using a new vendor score must defend.
• Match the adverse-action language to the facts in SPCP written plan versus actual originations.
• Check HMDA coding and underwriting policy against a model update needs.
• For this Fair Lending Examination and Notices file, read SPCP written plan versus actual originations against a DOJ or CFPB monitor request for pricing files and write the one fact that would move a model update needs for HMDA data-quality manager.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Fair Lending / Examination and Notices packet (SPCP written plan versus actual originations after a DOJ or CFPB monitor request for pricing files). If SPCP written plan versus actual originations cannot force a Fair Lending label under Examination and Notices, stop. If SPCP written plan versus actual originations after a DOJ or CFPB monitor request for pricing files cannot support Remove access or reverse the item versus Temporary compensating control on this Fair Lending Examination and Notices close, HMDA data-quality manager must do not infer a control or scheme beyond the transaction and entitlement evidence.