Fair Lending HMDA DF Update (Build 73.1.13)... · Fair Lending HMDA DF Update (Build ... Fair Lending Wiz ... Control group settings for Fair Lending reports have been updated to

Consumer Compliance Solutions

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Fair Lending HMDA DF Update (Build 73.1.13) Release Notes

December 2017


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Table of Contents Table of Contents ................................................................................................................................................................ 2

Overview ................................................................................................................................................................................ 3

Installation Notes ................................................................................................................................................................... 3

Fair Lending Wiz HMDA Dodd-Frank (DF) Updates ........................................................................................................... 4

Fair Lending Reports Module Control Group Settings ................................................................................................... 5

Focal Point Report (FPR) ................................................................................................................................................ 7

Difference of Means Report (DOM) ............................................................................................................................ 10

Comparative File Review (CFR) Control Group Settings .............................................................................................. 13

Comparative File Review Report ................................................................................................................................. 15

Fair Lending Regression Module (Decisioning/Pricing) ............................................................................................... 17

Known FL Wiz HMDA DF Update Issues .............................................................................................................................. 18


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Overview Fair Lending Wiz HMDA DF Update (Build 73.1.13) includes compliance updates for HMDA DF regulation. The Focal Point Report, Comparative File Review, Difference of Means, Decisioning and Pricing Regression reports have all been updated to support the HMDA DF format. It can be installed as an upgrade to Version 7.3 (Build 73.0.39)

Installation Notes During the CRA Wiz and Fair Lending Wiz program install, the installer checks for a minimum supported SQL version. The minimum supported SQL Version for Fair Lending Wiz HMDA DF update is SQL Server 2008 R2.

If you attempt to install the software using an earlier SQL version, the installer displays the following error message:

Error 27504. SQL version requirements not met: DVWCRADB11. This installation requires SQL Server 10.50.6000.34 or later.

You can click the OK button to acknowledge the message and proceed with installation, however, Wolters Kluwer does not recommend proceeding with the installation if you are not running SQL Server 2008 R2 or higher.

After this update has been applied on both the front-end and the back-end you may notice that the front-end build number (73.1.13) is missing a 0 that the back-end build number (73.01.13) contains. Please note that this is behaving as designed and does not indicate there was a problem with the update.

For more information, please contact Wolters Kluwer Technical Support at 800.261.3111.


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Fair Lending Wiz HMDA Dodd-Frank (DF) Updates

Reports/Modules have been updated to support HMDA DF regulations. This release covers two views of data.

1. Disaggregate View with Subcategories : Focal Point Report, Difference of Means Report, Comparative File Review Report

a. Race: Asian, Asian Indian, Chinese, Japanese and so forth. b. Ethnicity: Hispanic, Mexican, Puerto Rican and so forth. c. Gender: Male, Female, Male and Female Both.

2. Aggregate View with Main Categories: Regression Module. a. Race: All subcategories are rolled to their respective main category. b. Ethnicity: All subcategories are rolled up to their respective main category c. Gender: Male, Female, Male and Female (added up to Joint)

Refer to the following sections when file selected for review is HMDF file type in Fair Lending Wiz.

Fair Lending Reports Module Control Group Settings Focal Point Report (FPR) Difference of Means Report (DOM)

Comparative File Review (CFR) Control Group Settings

Comparative File Review Report

Fair Lending Regression Module (Decisioning/Pricing)


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Fair Lending Reports Module Control Group Settings

Control group settings for Fair Lending reports have been updated to include below values for selections under Race/Eth/Gender. These can accessed via below button under Fair Lending Reports Module.

Race Control/Protected Group Settings:

Ethnicity Control/Protected Group Settings:


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Gender Control/Protected Group Settings:


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Focal Point Report (FPR) Report has been updated to reflect HMDA DF fields at report selection and on the report output.

1. Report Selection : HMDA DF Pricing Fields 2. Report Output : Race/Ethnicity/Gender

HMDA DF Pricing Fields:

Report Selection has been updated for user to select HMDA DF “Pricing Fields” under Rate 1 and Rate 2 with following values.

Discount Points|Interest Rate|Lender Credits|Origination Fees|Total Loan Costs|Total Points and Fees|Rate Spread


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Disaggregate Race/Ethnicity View

Report output under Race and Ethnicity has been updated with HMDA DF Disaggregate values.


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Updated Gender View

Report output under “Sex of Applicant” has been updated with HMDA DF values.


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Difference of Means Report (DOM) Report has been updated to reflect HMDA DF fields at report selection and on the report output.

1. Report Selection : Numeric Factors 2. Report Output: Similar to Focal Point Report, Race/Ethnicity/Gender values are included in the output if user

selects these values to be part of report results. HMDA DF Pricing Fields:

Report Selection has been updated for user to select HMDA DF “Fields” under Numeric Factors selection.


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Disaggregate Race/Ethnicity View

Report output under Race and Ethnicity has been updated with HMDA DF Disaggregate values.


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Updated Gender View

Report output under “Sex of Applicant” has been updated with HMDA DF values.


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Comparative File Review (CFR) Control Group Settings

Control group settings for CFR have been updated to include below values for selections under Race/Eth/Gender.

These have been updated similar to Fair Lending Control Group Settings have. These can be accessed via below button on CFR report selection screen.

In addition, user can classify control/protected class definition for CFR model via selections below which have been updated for Race/Ethnicity/Gender.

Race Control/Protected Class Definition


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Ethnicity Control/Protected Class Definition

Gender Control/Protected Class Definition


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Comparative File Review Report

Report has been updated to reflect HMDA DF fields at report selection and on the report output.

1. Report Selection : a. Numeric Factors under Pricing Comparison b. Numeric Comparison Factor Selection

2. Report Output: Similar to Focal Point Report, Race/Ethnicity/Gender values are included in the output if user selects these values to be part of report results.

Pricing Factor Definition:


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Comparison Factor Selection:


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Fair Lending Regression Module (Decisioning/Pricing)

Fair Lending Regression Module has been updated to support HMDF file type to perform Regression Analysis on HMDA DF data.

• Module has been updated to reflect “Aggregate” view of HMDA DF data (Race/Ethnicity/Gender) • Module Output/Reports view and structure remain as is. • Below are details on how “Aggregate” view is reflected in Decisioning/Pricing module outputs.

Race:

Native American

Asian (Race codes 21-27 are included under this category)

Black

Hawaiian Pacific (Race Codes 41-44 Native Hawaiian or Other Pacific Islander are Included under this category)

White

2+ Minority

Joint (Whit/Min)

NA/ NA

Ethnicity:

Hispanic (Ethnicity Codes 11-14 are included under this category)

Not Hispanic

Joint (Non Hisp/Hisp)

Gender:

Minority Gender Group (Existing Functionality where user can select Male or Female)

Comparator Gender Group (Existing Functionality where user can select Male or Female)

Undefined Gender Group (Applicant Selected both Male and Female and NA)


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Known FL Wiz HMDA DF Update Issues

• Applnumb is required in HMDF file type to access Fair Lending Reports (Focal Point Report, Regression modules) Tracking Number: 114939

WORKAROUND: If your HMDF file does not contain the applnumb field and you would like to generate these Fair Lending reports you can add the Applnumb field to your file by going into File Management right clicking on your Mortgage DF files going to Modify Structure – Optional Columns – Add. After you click Add type in Applnumb with the Data Type of VarChar and Size of 25 then click Apply then OK.


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About Wolters Kluwer Financial Services - Wolters Kluwer Financial Services provides audit, risk and compliance solutions that help financial organizations improve efficiency and effectiveness across their enterprise. Whether complying with regulatory requirements, addressing a single key risk, or working toward a holistic risk management strategy, more than 15,000 customers worldwide count on Wolters Kluwer Financial Services for a comprehensive and dynamic view of risk management and compliance. With more than 30 offices in over 20 countries, the company’s prominent brands include: FRSGlobal, ARC Logics for Financial Services, PCi, Bankers Systems, VMP® Mortgage Solutions, AppOne®, GainsKeeper®, Capital Changes, NILS, AuthenticWeb™ and Uniform Forms™. Wolters Kluwer Financial Services is part of Wolters Kluwer, a leading global information services and publishing company with annual revenues of (2011) €3.4 billion ($4.7 billion) and approximately 19,000 employees worldwide. Please visit our website for more information.

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800.261.3111

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Fair Lending HMDA DF Update (Build 73.1.13)... · Fair Lending HMDA DF Update (Build ... Fair Lending Wiz ... Control group settings for Fair Lending reports have been updated to