Assess whether comparative files show second-review bias (dd5374)

Situation

Redlining and HMDA Data work in a small-business desk using a new vendor score now turns on comparative files show second-review because a DOJ or CFPB monitor request for pricing files put SPCP written plan versus actual originations in play. Redlining and HMDA Data work in a small-business desk using a new vendor score now turns on comparative files show second-review because a DOJ or CFPB monitor request for pricing files put SPCP written plan versus actual originations in play; second-review underwriter should say what SPCP written plan versus actual originations proves for Fair Lending.

Decision

Second-review underwriter 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

• A DOJ or CFPB monitor request for pricing files is noise around an already-controlled Redlining and HMDA Data process in a small-business desk using a new vendor score, given SPCP written plan versus actual originations.
• A DOJ or CFPB monitor request for pricing files is the event in SPCP written plan versus actual originations that forces Remove access or reverse the item for second-review underwriter under Fair Lending.
• SPCP written plan versus actual originations shows a one-file miss after a DOJ or CFPB monitor request for pricing files, not a Redlining and HMDA Data program failure.
• SPCP written plan versus actual originations cannot decide comparative files show second-review yet after a DOJ or CFPB monitor request for pricing files; hold is the only Fair Lending close a small-business desk using a new vendor score can defend.

Analysis required

• Check HMDA coding and underwriting policy against comparative files show second-review.
• Compare SPCP written plan versus actual originations 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 second-review underwriter cannot explain from SPCP written plan versus actual originations.
• For this Fair Lending Redlining and HMDA Data 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 comparative files show second-review for second-review underwriter.