Articles
Chapter 35A: Fair Lending Litigation
Wiley
Valerie Hletko authored chapter 35A, "Fair Lending Litigation," in the Litigation Services Handbook: The Role of the Financial Expert fifth edition, 2013 cumulative supplement.
Fair lending has become an increasingly active area of litigation by government agencies and private litigants. At their core, fair lending cases allege unfavorable treatment toward an applicant or borrower in a legally protected class of persons in some aspect of a credit transaction. This chapter discusses the legal background of fair lending litigation, the expansion of fair lending litigation beyond mortgage underwriting and pricing, the forms of data used in fair lending litigation, the use of proxies, and how to approach statistical analysis of underwriting, pricing, redlining, and default servicing.