Do Asian applicants experience discrimination in the lending process?
In the course of our Fair Lending Testing work, we find it’s less common to see loan portfolios in which disparities adversely impact Asian Pacific Islander (API) consumers.
Typically, API applicants have higher incomes, stronger credit scores, and lower default rates.
That being said, we’ve recently identified two areas in which API applicants experience notable disparities:
▶ Disproportionately high failure rates on residency checks
▶ More frequent flagging for overstating income
These findings underscore the importance of fairness testing at every stage of the lending process, regardless of borrower profile or assumptions.
Contact FairPlay to ensure that you maintain fairness throughout your customer journey.
Fair Lending Analysis
Identify and overcome tradeoffs between performance and disparity.
