Embed Size (px)
Citation preview
Regulatory Risk Services
www.crowehorwath.comAudit | Tax | Advisory | Risk | Performance
Crowe® FLARE for Automotive LendingSo Many Challenges, So Little TimeAlthough the underlying regulations have been in place for decades, the emergence of the Consumer Financial Protection Bureau’s (CFPB) Office of Fair Lending and Equal Opportunity, combined with vigorous enforcement by the U.S. Department of Justice, places automotive lenders at increased risk of enforcement with respect to traditional banking products as well as credit obtained through third-party lending activities.
In order to remain competitive in this environment, automotive lenders need a guide to navigate the regulatory scrutiny and manage the workload that accompanies oversight by management. Regardless of sales volume, indirect lending activity, asset size, product offering complexity, or program maturity, Crowe Horwath LLP can help you comply with fair lending requirements using our subject matter expertise, in-depth industry experience, and a multifaceted suite of solutions.
A Resource to Address ChallengesMany automotive lenders face challenges in finding personnel with sufficient fair lending expertise and knowledge of both regulatory compliance and advanced statistical concepts. Crowe can assist you in almost any aspect of fair lending compliance with co-sourced or outsourced service options.
Whether it’s helping you understand how to structure a fair lending program, conducting a risk assessment, helping design policies and procedures, conducting and interpreting data analysis, or identifying process enhancements, our multidisciplinary team of specialists combines compliance experience with data analytics expertise to provide end-to-end solutions including:
■ Outsourced data analysis
■ Data look-back reviews
■ Analysis of add-on service offerings
■ Comparative file reviews
■ Loan file testing
■ Pricing and underwriting analysis
■ Compliance program assessments
■ Fair lending risk assessments
■ Debt collection and repossession
■ Consulting and audit services for consumer regulations
Crowe FLARE for Data AnalysisCrowe risk specialists use our proprietary Crowe Fair Lending Analytical and Regression Engine (FLARE) solution to perform advanced statistical analysis of your lending data and identify possible risk factors or inequities relating to diversity, geography, and economic indicators.
Crowe FLARE is designed to assist in the use of advanced statistical techniques including the Bayesian Improved Surname Geocoding (BISG) method and advanced regression techniques to help identify possible risk factors at the dealership and institutional level. The solution also incorporates capabilities to address the BISG method of identifying borrower characteristics used by the CFPB.
www.crowehorwath.comAudit | Tax | Advisory | Risk | Performance
Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2014 Crowe Horwath LLP
Using FLARE, we generate a risk assessment, interpret potential risk impact, and provide management with a recommendation of next steps to implement remedies. The easy-to-use interface allows access via the Web or smart devices and is designed to help risk management personnel:
■ Efficiently identify and address fair lending risk factors
■ Take advantage of customizable monitoring dashboards
■ Effectively drill down to significant risk factors
■ Maintain third-party dealership fair lending data, such as training records and loan file support
View Risk Factors to Bring Areas of Greater Complexity Into Focus Risk management personnel can interact with their loan portfolio data and use dashboards to view activity at the institutional, regional, dealer, loan, and individual applicant level.
The Crowe FLARE solution can provide you and your compliance team with clear and easy-to-understand visualizations of fair lending data analytics, which assists with integration into a compliance management program or risk assessment and provides clear communication for boards and audit committees.
Contact InformationFor more information on Crowe FLARE for automotive lending, contact:
Paul Osborne, CPA, CPO, AMLP 317.706.2601 [email protected]
Niall Twomey, CRCM 630.574.1806 [email protected]
Mark Blosser 317.706.2618 [email protected]
RISK15346
Crowe FLARE for Automotive Lending Interactive Dashboard Sample
