Over the years in my consulting practice, I have seen numerous institutions struggle to manage fair lending risk with varying degrees of success. Due to the difficulty in managing such risk, many banks have opted for a “one size fits all” type approach to pricing and underwriting. While this approach may help in reducing risk, it is not prudent from a safety and soundness standpoint, and many institutions have found it somewhat untenable in the interest rate and competitive environment we are now in.
A few years ago, I embarked upon development of a software product to manage consumer loan pricing and underwriting to address this need. The product was designed for community banks and was centered on two core objectives: (1) effectively manage fair lending risk at a lower cost by leveraging objective policy and technology; and (2) implementing a manageable and profitable underwriting and pricing strategy based on relevant criteria. Radiant is the result of these efforts.
I believe the software is the first of its kind as it was built around managing fair lending risk. Although the system continues to evolve, I have been pleased with its performance thus far. The system is easily deployed and managed and requires only a simple web browser to operate.
We will begin introducing new features for the product into the market place in the coming months. If you would like more information or have any questions, I hope you will feel free to contact me anytime.
Brandon A. Roberts, Ph.D.
» Brandon A. Roberts is a banking industry economist and president of Premier Insights, Inc., a research-consulting firm he founded in 1995. Brandon has over 20 years of experience in the banking industry and in work related to fair lending and the Community Reinvestment Act (CRA). He holds a Doctor of Philosophy in Political Economy from the School of Economic, Political and Policy Sciences at the University of Texas at Dallas.