The Elephant in the Room: Fair Lending Regression Analysis

We’ve all heard the expression, “how do you eat an elephant? One bite at a time.” The inventor of this phrase must have been marooned and starving on an elephant-infested island, because seeing an elephant and wondering, “how am I going to eat that thing?” is not exactly a normal reaction. Even an avid steak-eater likely doesn’t see a cow and immediately wonder how to eat it. But however it happened, someone noticed that attempting to eat the world’s largest land animal in one go would be a challenge, and was wise enough to point out that taking a large task one small step at a time is much less daunting. When it comes to fair lending, you may be looking at a mountain of data and wondering how on earth you can sift through it all to come up with anything meaningful. The good news is that there’s an even better way of doing it than taking it one bite at a time, and that way is regression analysis…