CRA provided fair lending analyses for a major automotive lender in response to a DOJ investigation and separate class action litigation. The DOJ closed the investigation without bringing charges against the client. In multiple engagements for captive finance arms and their parent companies, we performed several detailed financial analyses of the automotive retail channel.
What is disparate impact testing?
Disparate impact testing requires quantitatively testing models for fairness with respect to classes of borrowers protected under the Equal Credit Opportunity...