HMDA 2018 UPDATE

Prepare for the 2018 HMDA rule changes, effective January 1, 2018, with the ability to test the integrity of new and modified form fields in the required 2018 file format in the most recent release of RiskExec.

Test The New Format

Simply select “2018” as the data format for the File Year when creating a “New File”.

The Application Detail screens now include all updated fields.

Please note the following when creating a HMDA 2018 Test:

• 2018 test files still utilize 2017 edit check criteria, as 2018 edit checks have not been released by the CFPB. These edit checks will be modified following the CFPB’s update in an upcoming RiskExec release. (Since this release, the CFPB has announced the HMDA 2018 Edit Checks and they are being added to RiskExec)
• While current import formats will work with the new RiskExec 2018 files, some data may display as invalid as certain codes and transformations have been updated.
• If your institution has a final 2018 extract format from your LOS or updated data source, please notify our support team and we will modify your import formats as appropriate.
• Users may manually “add application” data to explore the new fields without requiring an import.

The HMDA 2018 format feature is FOR TESTING PURPOSES ONLY. It is not required until January 1, 2018. RiskExec will utilize a properly formatted pipe delimited 2017 file to complete your 2017 submission.

FAIR LENDING UPDATE

Regression Analysis Segmentation Modified For Up To 5 Segmentation Variables

Segmentation allows you to use a single regression model and create separate results according to specific criteria. Now, an analysis can be separated by business unit, channel, and loan purpose in a single regression.

Example: A user wants to separate Purchase, Home Improvement, and Refinance transactions and has two separate business units.

The user would select “Business Unit” and “Loan Purpose” as segmentation variables and RiskExec will automatically create analyses for each business unit and each loan purpose.

Dynamic Variables Available For Use In Regression Modeling

Dynamic binary variables allow users to create custom definitions for variables as needed.

These binary variables can be added to regression models to identify coefficient values for the criteria contained in the variable. The actual 0/1 value of each DV is calculated when the analysis is run. These variables can be used for banded data and/or to obtain a measured value of the effect a particular protected class has on regression results.

Example 1: Banded Data

A user may create a “Low FICO” DV defined as FICO <= 500. This DV can be used as an independent variable and its coefficient will measure the influence of a low FICO.

Example 2: Protected Class Effect

A user can understand the effect of a particular race category by creating a DV for a protected class (e.g “Applicant is Black”) and define the variable as Combined Race/Ethnicity = BLACK. When this DV is used as an independent variable in a regression, the p-value of this variable in the coefficient section of an analysis can be used to judge the statistical significance.

REDLINING ANALYSIS UPDATE

State Level Maps Now Available

State level maps are now available when a state is selected as an included geography.

Assessment Area/REMA

Analyses based upon an Assessment Area/REMA will now display all geographies within the area regardless of whether lending exists in the particular dataset.

Example:

Dallas County is included in an Assessment Area, however the institution did not take any applications in this county. Dallas County will now appear in the geography selection of the Redlining Analysis setup screens. If selected, a market analysis will be generated for this county.