Tuscan Club University

Know Your Data

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Hi! It’s Tory Haggerty from Tuscan Club University’s Fair Lending School and welcome to another Fair Lending Short.

In this Fair Lender Short I want to talk about a fair lending myth and that myth is, if there is data available, somebody’s looking at it.

Well I guess that’s partially true because a lot of times somebody is looking at it, but what I want you to realize is that if you’re a HMDA Reporter specifically and/ or if you’re a large bank under CRA, basically you’re thinking that ok we have that data available and somebody is analyzing it, but that’s not always the case.

Especially when it comes to HMDA Data, if you’re a HMDA Reporter there is a ton of information that you can get from that HMDA Data. Even if you are not an HMDA Reporter there is still a lot of great data out there simply from a loan download.

Now if you ever get a chance to go through our Fair Lending School, we will teach you how to do a pricing review and basically what that is, is an Excel spreadsheet of a one year history of all your loans that you’ve originated.  We can cut them up and slice and dice them into consumer loans and home loans and there’s all kinds of pricing data and analysis you can do with Microsoft Excel.  

So the whole point of this video, is if you have data available you should be doing some type of analysis, whether through a pricing review, a red-lining review, or simply geo-coding loans. Whether it be HMDA Data or CRA Large Bank Data, you should be doing some type of review.  Why? Because the examiners are going to be reviewing the data. I know that, because that’s how I learned how to do all of these reviews.  If you’re interested in learning more, you can certainly check out our school and we’ll teach you how to do all of these things.

If you’re a larger organization and especially if you’re a HMDA Reporter, you should consider fair lending software.  There are several companies that have great fair Lending software.  If you are large enough, if you have 500-1000 LAR lines or more, you should really be considering either getting your own software or paying someone to look at that data.  

Think of it this way, it’s an open book test.  You get to look up the answers. Know your data before the examiners look at it.

Thanks for reading!

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