Assess whether a redlining pattern exists after controls (227761)

Situation

A DOJ or CFPB monitor request for pricing files put credit-card limit assignment disparity table 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 redlining pattern exists from credit-card limit assignment disparity table, 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 credit-card limit assignment disparity table after a DOJ or CFPB monitor request for pricing files.

Hypotheses to test

• Credit-card limit assignment disparity table reads as Remove access or reverse the item once a DOJ or CFPB monitor request for pricing files is lined up to the same Fair Lending population.
• Credit-card limit assignment disparity table is closer to Temporary compensating control after a DOJ or CFPB monitor request for pricing files; Remove access or reverse the item would over-claim this Examination and Notices extract.
• Approve a documented exception is still live in credit-card limit assignment disparity table for HMDA data-quality manager in a small-business desk using a new vendor score.
• Credit-card limit assignment disparity table is missing the fact HMDA data-quality manager needs after a DOJ or CFPB monitor request for pricing files; stop this Fair Lending close.

Analysis required

• Check HMDA coding and underwriting policy against a redlining pattern exists.
• Compare credit-card limit assignment disparity table to similarly situated files, second-review notes, and reason codes after a DOJ or CFPB monitor request for pricing files.
• Flag any disparate-impact table HMDA data-quality manager cannot explain from credit-card limit assignment disparity table.
• For this Fair Lending Examination and Notices file, read credit-card limit assignment disparity table against a DOJ or CFPB monitor request for pricing files and write the one fact that would move a redlining pattern exists for HMDA data-quality manager.

Recommendation