This article provides an overview of approaches that can be used in fair lending analysis for prescreened solicitation, underwriting, credit line assignment, and pricing of credit card accounts. To read the article, click below. For more in-depth coverage, David Skanderson and Dubravka Ritter published a discussion paper entitled “Fair Lending Analysis of Credit Cards” for the Federal Reserve Bank of Philadelphia.
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...