Bank regulators and prosecutors have entered the computer age. Just as the examination procedures for identifying discrimination have evolved from testing for technical compliance to comparative file reviews, so have the examiners' techniques and tools. Statistical modeling is now used by the Fed and the Office of the Comptroller of the Currency in fair-lending examinations and by the Justice Department in investigating and prosecuting lending discrimination.

Statistical modeling, we predict, will also become the standard self-assessment tool for financial institutions with extensive residential mortgage portfolios.

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