Disparate Impact is not Dead
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In this episode of The Compliance 911, Len Suzio of GeoDataVision and Dean Stockford of M&M Consulting discuss why disparate impact analysis remains an important tool for identifying and managing fair lending and redlining risks, despite recent regulatory changes. They explore the role of statistical significance in detecting potential discrimination, the importance of evaluating lending practices and peer group comparisons, and how hidden market factors can distort redlining assessments. Through real-world examples, they examine strategies for investigating statistically significant findings, including reviewing loan products, pricing, multifamily lending, and affordable housing activity. They also highlight the importance of defining a realistic Reasonably Expected Market Area (REMA) and explain how financial institutions can use statistical analysis proactively to strengthen compliance efforts and prepare for future regulatory examinations. Brought to you by GeoDataVision and M&M Consulting