Assess whether a special-purpose program is well designed or a pretext

Situation

Manufactured-housing dealer overlay notes arrived with a board asking if the bank should settle a matched-pair study for community-development lender. That is a Fair Lending Examination and Notices decision on a special-purpose program is in a manufactured-housing lender with dealer-originated files.

Decision

Community-development lender in a manufactured-housing lender with dealer-originated files must choose A special-purpose program is well designed / A pretext using manufactured-housing dealer overlay notes after a board asking if the bank should settle a matched-pair study.

Hypotheses to test

• A board asking if the bank should settle a matched-pair study is noise around an already-controlled Examination and Notices process in a manufactured-housing lender with dealer-originated files, given manufactured-housing dealer overlay notes.
• A board asking if the bank should settle a matched-pair study is the event in manufactured-housing dealer overlay notes that forces A special-purpose program is well designed for community-development lender under Fair Lending.
• Manufactured-housing dealer overlay notes shows a one-file miss after a board asking if the bank should settle a matched-pair study, not a Examination and Notices program failure.
• Manufactured-housing dealer overlay notes cannot decide a special-purpose program is yet after a board asking if the bank should settle a matched-pair study; hold is the only Fair Lending close a manufactured-housing lender with dealer-originated files can defend.

Analysis required

• Flag any disparate-impact table community-development lender cannot explain from manufactured-housing dealer overlay notes.
• Test a documented exception versus a pattern a manufactured-housing lender with dealer-originated files must defend.
• Match the adverse-action language to the facts in manufactured-housing dealer overlay notes.
• For this Fair Lending Examination and Notices file, read manufactured-housing dealer overlay notes against a board asking if the bank should settle a matched-pair study and write the one fact that would move a special-purpose program is for community-development lender.

Recommendation

Choose A special-purpose program is well designed / A pretext on this Fair Lending / Examination and Notices packet (manufactured-housing dealer overlay notes after a board asking if the bank should settle a matched-pair study). If manufactured-housing dealer overlay notes cannot force a Fair Lending label under Examination and Notices, stop. Do not invent pages a manufactured-housing lender with dealer-originated files does not have.