Fair Lending Compliance: Intelligence and Implications for Credit Risk Management

ISBN-13: 9780470167762 / Angielski / Twarda / 2007 / 384 str.

Mingyuan Zhang; Clark R. Abrahams

Opis

Praise for

Fair Lending ComplianceIntelligence and Implications for Credit Risk Management

"Brilliant and informative. An in-depth look at innovative approaches to credit risk management written by industry practitioners. This publication will serve as an essential reference text for those who wish to make credit accessible to underserved consumers. It is comprehensive and clearly written."
--The Honorable Rodney E. Hood

"Abrahams and Zhang's timely treatise is a must-read for all those interested in the critical role of credit in the economy. They ably explore the intersection of credit access and credit risk, suggesting a hybrid approach of human judgment and computer models as the necessary path to balanced and fair lending. In an environment of rapidly changing consumer demographics, as well as regulatory reform initiatives, this book suggests new analytical models by which to provide credit to ensure compliance and to manage enterprise risk."
--Frank A. Hirsch Jr., Nelson Mullins Riley & Scarborough LLP Financial Services Attorney and former general counsel for Centura Banks, Inc.

"This book tackles head on the market failures that our current risk management systems need to address. Not only do Abrahams and Zhang adeptly articulate why we can and should improve our systems, they provide the analytic evidence, and the steps toward implementations. Fair Lending Compliance fills a much-needed gap in the field. If implemented systematically, this thought leadership will lead to improvements in fair lending practices for all Americans."
--Alyssa Stewart Lee, Deputy Director, Urban Markets Initiative The Brookings Institution

" Fair Lending Compliance]...provides a unique blend of qualitative and quantitative guidance to two kinds of financial institutions: those that just need a little help in staying on the right side of complex fair housing regulations; and those that aspire to industry leadership in profitably and responsibly serving the unmet credit needs of diverse businesses and consumers in America's emerging domestic markets."
--Michael A. Stegman, PhD, The John D. and Catherine T. MacArthur Foundation, Duncan MacRae '09 and Rebecca Kyle MacRae Professor of Public Policy Emeritus, University of North Carolina at Chapel Hill

Spis treści

Foreword.

Preface.

Chapter 1. Credit Access and Credit Risk.

Chapter 2. Methodology and Elements of Risk and Compliance Intelligence.

Chapter 3. Analytic Process Initiation.

Chapter 4. Loan Pricing Analysis.

Chapter 5. Regression Analysis for Compliance Testing.

Chapter 6. Alternative Credit Risk Models.

Chapter 7. Multi–layered Segmentation.

Chapter 8. Model Validation.

Index.

O autorze

CLARK ABRAHAMS is the Director for Fair Banking at SAS, where he leads business and product development. He has over thirty years of experience in the financial services industry, at corporations including Bank of America and Fair Isaac Corporation.

MINGYUAN ZHANG is Solutions Architect for SAS Financial Services. Over the last 10 years with SAS Institute, he has successfully developed and implemented many economic forecasting, data mining, and financial risk management solutions for various industries. Prior to joining SAS, he served as an economic and financial analyst for a leading telecommunications consulting firm.

Blurb

FAIR LENDING COMPLIANCE

INTELLIGENCE AND IMPLICATIONS FOR CREDIT RISK MANAGEMENT

Millions of Americans are unable to borrow from lending institutions largely because lenders do not have the proper credit information to prove an individual′s willingness and ability to pay bills. An understanding of this fine line between credit access and credit risk is key to developing a new generation of models and processes that preserve safe and sound lending while promoting inclusiveness in the credit market.

Part of the Wiley and SAS Business Series, Fair Lending Compliance: Intelligence and Implications for Credit Risk Management explores this overlap between fair lending and credit risk in order for lenders to provide greater and more affordable access to credit while operating within acceptable risk/return thresholds. With coverage of fair lending compliance specific to consumer and small business credit risk management, this innovative and timely work shows how various groups and organizations, as well as forward–thinking risk officers, can work to close the information gap for millions of Americans by maximizing the value of emerging nontraditional data sets for their institutions.

Written for corporate executives, loan officers, compliance and credit risk managers, and information technology professionals, as well as lawyers, legislators, federal and state regulators, researchers, and academics, this book provides in–depth coverage of:

• The dramatic changes in America′s demographic and economic trends and how institutions can effectively respond to them and embrace their revenue potential
• Fair lending compliance analysis methodology, components, and a strategic framework for approaching analysis
• Advances in methodology including the universal performance indicator (UPI), dynamic conditional process (DCP), risk evaluation/policy formulation system (REPFS), multi–layered segmentation (MLS), and the credit and compliance optimization process (CCOP)

Fair Lending Compliance provides coverage of traditional approaches coupled with several pioneering breakthroughs in methodology and technology that can enable all stakeholders to gain a broader and deeper understanding of fair lending analysis and develop more effective, more efficient, and better coordinated compliance self–assessment programs and credit risk management systems.