Fair Lending

Visible Equity's fair lending module uses advanced statistical techniques to flag potential discrimination so you can quickly take corrective action.

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Overview
Overview
With our fair lending module, you will be able to quickly see whether any prohibited basis groups, such as certain races/ethnicities, gender, ages, etc., are receiving disadvantageous pricing or products. Most fair lending products simply use average rates for comparison, but our models consider important factors (such as credit quality) in determining whether potential discrimination exists. Did you know that in many cases you are responsible for the actions of any third parties, such as indirect auto dealers? Help avoid costly fines and litigation by building into your fair lending practices consistent comparative testing and reporting. By continually monitoring your loan portfolio for discrepancies, you'll be able to identify any problems before they become bigger issues.

Features
Features

  • Estimated Race/Gender
    We employ the Bayesian Improved Surname Geocoding (BISG) method to estimate race probability. We use a first name database to assign gender.
  • Expected Rate Modeling
    By analyzing your loan data we estimate the expected interest rate for each loan, controlling for origination time period and credit quality. We can then compare these results to actual rates charged to determine if potential discrimination exists.
  • Expected Approval Rate Modeling*
    For loan applications we calculate an expected approval rate for each applicant and then compare these results to actual approvals or denials.
  • Steering
    Our steering ratios determine if there is comparative evidence of steering, or abnormal concentrations of disadvantageous products by prohibited basis groups.
  • Denial Ratio Analysis
    For loan applications, our software analyzes your denial (or approval) ratios, as well as time to decision metrics for potential discrimination.
  • Potential Discrimination
    We employ several statistical tests to analyze whether potential disparate treatment/discrimination exists in the form of pricing discrimination, steering, or approvals, and, where possible, highlight these situations with clear red, yellow, and green indicators.
  • *Contact Visible Equity for current availability
Solutions
Data Warehousing
Store and manage all your data in one location. Data warehousing is the first pillar of our platform. We aggregate data from your core processor, third party processors, loan origination software, even your spreadsheets into our secure, accessible data warehouse. You get an unlimited amount of storage, access to your data 24/7, and unlimited users, queries, exports.
Analytics
We make state-of-the-art analytics easy, affordable, and accessible for banks, credit unions, and financial institutions of all shapes and sizes. Powerful analytics is the second pillar of our platform. We infuse your data with our advanced analytics to create the perfect recipe for analytic success! Whether you are analyzing risk, estimating losses, or looking for predictive marketing, we are committed to our goal of using analytics to help our clients make better, data-driven decisions.
Reporting & Visualization Software
Create actionable dashboards and custom reports. Once we have your data and we infuse our data and analytics, we’re ready to create some amazing reports with the third pillar of our platform - reporting software. Our software allows you to easily create and save lists, filters, and actionable dashboards and reports to help better understand and communicate key results. We work hard to make our reports be insightful and look professional. The software is available 24/7 with no per user, per report, or per anything fees.
"We have been with Visible Equity since 2013. Since then we have decided to have them help us develop our CECL model. They have a very extensive library of standard reports and a very robust report-writing functionality if you choose to create your own reports."
Dean Uemura
EVP Support Services at Hawaii Community FCU
"Thank you to the Visible Equity team! They are a valued partner to our Credit Union. Their analytics are topnotch and their client teams are so user friendly. We are increasing our utilization of their products as compliance requirements are increasing. Highly recommend!"
Carl Roer
CEO at Cascade FCU
Fair Lending
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