Praise for
Fair Lending ComplianceIntelligence and Implications for Credit Risk Management
"Brilliant and informative. An in-depth look at innovative approaches to credit risk
management written by industry practitioners. This publication will serve as an essential
reference text for those who wish to make credit accessible to underserved consumers. It
is comprehensive and clearly written."
--The Honorable Rodney E. Hood
"Abrahams and Zhang's timely treatise is a must-read for all those interested in the
critical role of credit in the economy. They ably explore the intersection of credit
access and credit risk, suggesting a hybrid approach of human judgment and computer models
as the necessary path to balanced and fair lending. In an environment of rapidly changing
consumer demographics, as well as regulatory reform initiatives, this book suggests new
analytical models by which to provide credit to ensure compliance and to manage enterprise
risk."
--Frank A. Hirsch Jr., Nelson Mullins Riley & Scarborough LLP Financial Services
Attorney and former general counsel for Centura Banks, Inc.
"This book tackles head on the market failures that our current risk management
systems need to address. Not only do Abrahams and Zhang adeptly articulate why we can and
should improve our systems, they provide the analytic evidence, and the steps toward
implementations. Fair Lending Compliance fills a much-needed gap in the field. If
implemented systematically, this thought leadership will lead to improvements in fair
lending practices for all Americans."
--Alyssa Stewart Lee, Deputy Director, Urban Markets Initiative The Brookings Institution
"[Fair Lending Compliance]...provides a unique blend of qualitative and quantitative
guidance to two kinds of financial institutions: those that just need a little help in
staying on the right side of complex fair housing regulations; and those that aspire to
industry leadership in profitably and responsibly serving the unmet credit needs of
diverse businesses and consumers in America's emerging domestic markets."
--Michael A. Stegman, PhD, The John D. and Catherine T. MacArthur Foundation, Duncan
MacRae '09 and Rebecca Kyle MacRae Professor of Public Policy Emeritus, University of
North Carolina at Chapel Hill
Table of Contents
Foreword.
Preface.
Chapter 1. Credit Access and Credit Risk.
Chapter 2. Methodology and Elements of Risk and Compliance Intelligence.
Chapter 3. Analytic Process Initiation.
Chapter 4. Loan Pricing Analysis.
Chapter 5. Regression Analysis for Compliance Testing.
Chapter 6. Alternative Credit Risk Models.
Chapter 7. Multi-layered Segmentation.
Chapter 8. Model Validation.
Index.
384 pages, Hardcover
