Although most institutions do not intentionally discriminate, regulatory agencies now ask institutions to take a proactive approach by testing for disparate impact within the portfolio.
The Equal Credit Opportunity Act (ECOA), implemented by Regulation B (12 CFR 1002), promotes availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age. The problem most institutions face is how will they prove they are not discriminating.
How do you know if one of your auto dealers is discriminating, or a loan officer, or a branch? Collecting and analyzing data is the answer. The beauty of a data approach is that it presents un-biased facts.
To address this problem, Visible Equity created its Fair Lending Software.