Strong Fair Lending compliance relies on an effective compliance management system (CMS). ADI learns about each client’s business model, existing compliance program and experience, and known limitations. We provide independent insight into the assets and vulnerabilities of your CMS and then create a plan for strengthening it. ADI designs an actionable and results-oriented plan and then assists your organization in implementing that plan.

Regulators expect a Fair Lending CMS to contain a statistical testing component appropriate to the institution’s size and complexity. ADI’s deep knowledge and extensive experience supports our strong offerings of econometric and regression analysis. We apply this expertise to analyses of underwriting, pricing, pricing exceptions, and other areas of Fair Lending compliance, to determine if adverse outcomes are associated with a customer’s membership in a prohibited basis group.

Comparative File Reviews (CFRs) are a time-honored Fair Lending compliance methodology that ADI has employed since 2002. ADI’s experience conducting CFRs for lenders, as a stand-alone service, or as an extension of regression or econometric analysis, is deep and varied. We conduct CFRs on an outsource basis or in a collaborative process with our clients. For clients who do their own CFRs, ADI also provides guidance and can identify comparator files.

Fair Lending risk assessment is a critical component of a lender’s Fair Lending CMS. Assessments identify and measure the risk inherent in your financial institutions’ lending processes. Risk assessments also help the institution determine what controls and monitoring mechanisms are in place to mitigate those risks. When properly conducted, a risk assessment will identify Fair Lending risks and provide insight into how to minimize risk exposure.