Fair lending magi
p o i n t & c l i c k f a i r l e n d i n g a n a ly s i s
™
G R A P H I C A L U S E R I N T E R FAC E
We are continuously improving Fair Lending Magic™ to create the best online fair lending tool. Signifi cant feedback has been gathered from our users when developing this version. We listened and responded with new features to make Fair Lending Magic™ easier and more enjoyable to use.
Graphical User Interface
Extensive On-line Help
Easier navigation
Help all in one place
Fair Lending Magi
3.0!
Fair Lending Magi
™
3.0
3.0
3.0
G R A P H I C A L U S E R I N T E R FAC E
Extensive On-line Help
G R A P H I C A L U S E R I N T E R FAC E
G R A P H I C A L U S E R I N T E R FAC E
Fair Lending Magic™ 3.0 introduces an easier way
to view fair lending.
The design enhancements were done to provide a graphical overview of the entire fair lending compliance management process; from data import and data preparation to statistical, matched pair and redlining analysis.
The new graphical interface allows you to easily move from one analytical process to another, providing expert guidance along the way.
Watch short “how-to” videos that explain many tasks. Need to import some data, not sure where to begin an underwriting analysis, or how to create a map?
G R A P H I C A L U S E R I N T E R FAC E
Data Quality Assessment Tool
Enhanced Reporting
Smart & Simple
Document your fi ndings with custom notes
Fair Lending Magi
3.0!
Fair Lending Magi
™
www.fairlendingmagic.com
G R A P H I C A L U S E R I N T E R FAC E
With the introduction of the Data Quality Assessment Tool, your analysis is easier than ever. Quickly determine the quantity and quality of your data and identify the possible types of fair lending analyses that can and cannot be performed based upon your data’s integrity.
Review data fi eld population and check for invalid and missing variable values.
View and export applications with missing or invalid data, giving you the ability to verify and fi x data issues before proceeding with a more robust fair lending analysis.
With respect to reporting, the new custom notes feature makes it easy for the review team to document and share insights on individual reports. It gives users the ability to enter fi le review notes in matched pairs explaining apparent busi-ness justifi cations, if any.
Analyze QM loans and disparate impact. Use Fair Lending Magic™ to evaluate whether a lending practice has a discrimi-natory effect that actually or predictably results in a disparate impact on a group by race/ethnicity, age or gender.
Primary Purposes of Fair Lending Magic™:
Advantages of Web-based Software:
u Mortgage u Non-mortgage
u Auto u Consumer u Small Business
Key Features and BeneFits
H
Fast sophisticated reports in minutesH
simple and easy web-based interface with point &click filtering
H
elegant: can create beautiful maps and chartsthat document and tell your story
H
Cost eFFeCtive: the best value of any fair lendinganalysis tool on the market
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intuitive: easy to learn and master without theexpense of time consuming training courses
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extensive on-line help• provide a low cost and easy to use fair lending solution for institutions/
organizations of all sizes
• institutions can self-monitor for lending practices that bank examiners
and enforcement agencies consider discriminatory
• allows lenders and enforcement agencies to identify potential lending
violations of eCoa and FHact
• guides institutions to appropriate corrective action
• Conducts powerful descriptive analyses using matched pairs, statistics,
and mapping
• perform Cra reporting
• easy maintenance - you’re always using the latest and greatest version
• easy installation - why? because there’s nothing to install, ever
• Fully compatible with other systems because it is web-based
• secure - everyone you trust has access to the data via username and
password
• mobility - you can work from home, work, or on the road; anywhere you
have an internet connection
a C o m p l e t e o n l i n e F a i r l e n d i n g s o l u t i o n
Loan Types Analyzed by FLM™
o r g a n i z e a n d i m p l e m e n t Fa i r l e n d i n g m o n i to r i n g to day
Monitor for Potential Disparate Treatment • Determine why applicants with equal to better criteria were treated differently • Conduct underwriting and pricing-side by pricing-side matched pair analysis • Analyze loan officer and broker compensation • Perform Bench-mark/overlap analysis • Compare
approval/denial rates in minority and non-minority areas • Identify disparities inside and outside of CRA assessment areas • Drill down by numerous fields
• Analyze market penetration and avoid redlining
Organize/Automate File Review Process
• Assemble with one click multiple sets of fair lending workpapers • Preserve accountability from a quality control perspective • Organize data by time period, loan type, channel, company or user defined • Use loan underwriting guidelines to flag underwriting exceptions • Calculate pricing metrics
Build the Fair Lending Data Set for Analysis
• Allows for the import of HMDA submission ready data • Append additional data to create a rich dataset for fair
lending studies
• Import existing electronic system data in a variety of formats (hmda plus, origination or servicing system, etc.)
• Ability to quickly import electronic data to begin analysis • Update, edit or correct existing loan data from LOS • Combine and export fair lending dataset to spreadsheets • Automatically derive loan products from HMDA data • Import custom geography areas • Create stratified random samples • Geocoding add-in
Determine the Scope of a Fair Lending Review
• Identify the loan products, markets, and prohibited basis groups to be analyzed based on: • Underwriting disparities • Pricing disparities • Market penetration disparities • Retail and wholesale monitoring • High-Side and Low-Side Overrides CRA • Import assessment areas • Build and export assessment areas • Map assessment areas • Report on assessment area demographics by • Number/percent Low/Mod tracts • Analyze loans inside vs. outside assessment areas • Number/percent owner-occupancy
Control for Relevant Factors
• Limit analyses to specific loan products • Conduct an analysis based upon a specific time period • Evaluate the performance of a specific loan officer or broker • Analyze focal points by geographic areas: • Metro Areas (MSA/MD) • State, county, city, towns and places • Tract Demographics (Minority, High Minority, non-minority, etc.)
Easily Run Statistics to Make More Informed Decisions • Perform logistic regression for underwriting • Perform OLS regression for pricing • Conduct T-Test, Chi Square to test for statistical significance • Create Scatter Plots to visualize relations between variables of interest ABC Bank T-Test Criteria: None Standard Deviation Mean Cases Data Field Min Count 1: Min Count 2:0 0 .5725 8.2782 479 APRATE White, Exclude Hispanics
.5777 8.4542 221 APRATE Black, Any ethnicity
.5795 8.3337 700 Total t-Statistic Degrees of Freedom p-Value for T-Test Difference Between Means
-3.7705 698.0000 -.1760 .9821
f-Statistic p-value for F-Test .4321
.0002 Pooled Variance T-Test
Separate Variance T-Test -3.7579 424.0000
Degrees of Freedom p-Value for T-Test .0002
t-Statistic
F Test
Significant Not Significant, refer to Pooled Variance T-Test
Significant
Difference Between Means -.1760
p-value for F-Test f-Statistic
Levene's Test
Not Significant, refer to Pooled Variance T-Test
.7530 .0991
Fair Lending Magic, a product of ComplianceTech Copyright 2013
Race Estimation Add-in Available
• Create prohibited basis estimates for consumer, auto and business loans •
Estimate racial, ethnic and gender surro-gates based on surnames and block group demographics using the racestimator™
• Hosted on a SAS 70 Secured Site approved by a bank regulator • Does not store personal identifiers
• Access controlled through customer ID, user name and password authentication
• Loan identifiers are encrypted
• Meets government mandated privacy standards • Section 508 compliant for persons with disabilities
Contact us today to schedule an online demonstration:
202-842-3800 | www.fairlendingmagic.com
ComplianceTech 2120 Washington Blvd. Suite 400 Arlington, VA 22204
Powerful Visual Reporting with Charts and Maps
• Visually depict lending patterns in charts and maps
• Plot applications and loans on fair lending thematic map layers • Export charts as xls, html, rtf, pdf and bmp
• Save, copy and paste map images for use in reports • Compare your company’s profile to its regulatory peers
Ask about the discount for the Fair Lending Patterns™ bundle of LendingPatterns™ and Fair Lending Magic™
Extensive Security and Compliance Features
