Fair Lending Analysis Does Not Have to be Complex!


Fair Lending is confusing! The biggest question most lenders have is, how do I prove to an examiner that we do not have pricing disparity?

As a leading pricing engine in this country we heard this loud and clear from our clients and found a way to organize pricing data, equalize the interest rates, demonstrate a strong compliance management system over pricing disparity and recall this information for research or an exam.

Here is how it works:

  1. You pricing engine is configured to standardize your pricing policy. It also houses the reasons why a loan was priced a certain way, based on known variables such as risk adjustments and time-price differential in market shifts.
  2. The unknown or generally undocumented variables come from the borrower decisions. This means that based on the exact same borrower, the decision that they make can result in an interest rate difference of 1%. So it only makes sense that two borrowers who are similar in financial profile could have a different rate not based on pricing disparity, but based on the decision they made. The Optimal Advantage system locks down those decisions at the time of lock in.
  3. The Fair Lending analysis is done at the time of lock in, versus waiting until the loan closes and the mistake is already made or the reasons are a mystery.
  4. The time burden for analysis is very minimal because of the structure of the best practices workflow and the use of automation.
  5. The equivalent rate feature is a patented process that automates the equalization of your borrower rates with a push of a button! As a pricing engine we have the data to mathematically make all loans equal by accounting for risk adjustments and time price differentials.
  6. Finally, the historical database is a “real time” search of what was available for your client or any other scenario during that day in history. The ability to run this search combined with the ability to run a comparable search is a time-saver in an exam.
  7. All of this combined into a best practices workflow, turns fair lending analysis into an easier task for the mortgage company by saving time, personnel, money and increased regulatory scrutiny.

The response so far for Optimal Advantage and the Patent Pending Equivalent Rate has been overwhelmingly positive from our lender clients, their examiners, and consultants. To download a Free copy of our White Paper on Equalizing Rates, which is written by Ivan Darius, PHD and David Skanderson, PHD, please scan the QR Code or go to: ww.optimalblue.com/fair-lending-white-paper.

To speak with Tammy directly please email her at tbutler@optimalblue.com