Software for Fair-Lending Monitors Multiplying

Compliance officers preparing for fair- lending exams are increasingly using high-speed software to sift through loan records.

An upgraded version of one software package, Fair Lending Wiz, is scheduled to be launched today, said Christina Speh, executive vice president of its provider, PCi Services Inc.

Wiz can now compare the terms of loans offered to borrowers and applicants, not just identify the amount of lending to people segmented by race and gender, Ms. Speh said. "You can quickly see the matches where the pricing is off."

Another software provider, Maurice Jordaine-Earl, managing director of CLC Compliance Technologies Inc. in Washington, said he developed Wiz competitors Shamus and HMDAWare to avoid actually reading loan files.

Lenders are pressed to improve internal reviews because of litigation and mounting regulatory guidelines, Mr. Jordaine-Earl said. Software helps them see smoke to identify a possible fire, he added.

For instance, one PCi Wiz customer, Matthew A. Ondus, an Amsouth Bank vice president in Birmingham, Ala., said he downloads thousands of loan files into the software.

To split records between genders, he flags common names as male or female.

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