The scatter plot diagrams display loans based on the measurement value (such as rate) compared to the probability that the borrower is a minority. The probability that the borrower is a minority is based on current consensus data integrated into our system for the property zip code. Loans that display outside of the blue bar on the graph are considered “outside of range”, based on the threshold values that you configured in the system.
- To review your loans for the date range selected, click the Draw button next to the filter set that you want to view from the Fair Lending landing page. By default, the chart shows individual loans based on the filter set you have chosen. You can use the filters to refine the loan results.
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Each dot represents a loan. The vertical (Y) axis shows what variable is being measured. In this example, we are measuring rate. The average rate of all OB lenders, displays in purple on the axis. This is your peer analysis.
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The horizontal (X) axis shows the probability that the borrower is a minority, based on the zip code of the property. The farther right you move on the X-axis, the higher the probability that the borrower is a minority.
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The blue band indicates the configured minimum and maximum threshold values. For example, values may be configured values to.250% above and below the average loan rate. With this configuration, lenders can choose the acceptable risk above or below the median to determine which loans should be reviewed as outliers. For information on configuring the minimum and maximum values, see the “Admin Tab Settings” section of the Configure Optimal Advantage article.
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The red line is a correlation line that indicates possible pricing disparity. A flat red line indicates no pricing disparity and may be a good sign that loans are being priced the same. A red line that slopes up and to the right indicates that rates are higher for minority borrowers. If you detect this upward slope, you can use other measurement graphs to find the root cause of the issue. For instance, you may see that as the probability of minority increases, the FICO score goes down or the DTI is higher. These filters are in place to assist you in quickly determining why your data is showing this trend.
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The system displays information about the selected chart type and measurement variables below the plot graph. Review this information for a better understanding of the information displayed in the plot graph for the selected variable.
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To refine the loan results, change the filters at the top and/or right side of the screen.