Assess whether HMDA data can be relied on for the exam from credit-card limit

Situation

HMDA data can be relied on sits with exam-response coordinator because a DOJ or CFPB monitor request for pricing files hit an institution preparing for a redlining exam. Evidence is credit-card limit assignment disparity table; write the Fair Lending Pricing and Credit Limits option that extract can carry.

Decision

Exam-response coordinator in an institution preparing for a redlining exam 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

• A DOJ or CFPB monitor request for pricing files is noise around an already-controlled Pricing and Credit Limits process in an institution preparing for a redlining exam, given credit-card limit assignment disparity table.
• A DOJ or CFPB monitor request for pricing files is the event in credit-card limit assignment disparity table that forces Remove access or reverse the item for exam-response coordinator under Fair Lending.
• Credit-card limit assignment disparity table shows a one-file miss after a DOJ or CFPB monitor request for pricing files, not a Pricing and Credit Limits program failure.
• Credit-card limit assignment disparity table cannot decide HMDA data can be relied on yet after a DOJ or CFPB monitor request for pricing files; hold is the only Fair Lending close an institution preparing for a redlining exam can defend.

Analysis required

• Flag any disparate-impact table exam-response coordinator cannot explain from credit-card limit assignment disparity table.
• Test a documented exception versus a pattern an institution preparing for a redlining exam must defend.
• Match the adverse-action language to the facts in credit-card limit assignment disparity table.
• For this Fair Lending Pricing and Credit Limits 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 HMDA data can be relied on for exam-response coordinator.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Fair Lending / Pricing and Credit Limits packet (credit-card limit assignment disparity table after a DOJ or CFPB monitor request for pricing files). The follow-on Pricing and Credit Limits action is what exam-response coordinator does next: implement the option, assign an owner, and log the missing fact.