top of page

MODERN FAIR LENDING ANALYSIS

THE HIDDEN BIASES IN BISG PROXY-BASED DISPARITY ESTIMATES

The BISG race / ethnicity proxy model has been used by financial regulators - such as the CFPB - and consumer lenders for almost a decade to detect illegal discrimination in lending outcomes.  But what do we really know about the reliability of these proxy-based disparity estimates?

​

In this in-depth study, I explore this crucial question and provide data-driven results - and underlying intuition - to explain a number of hidden biases that may be driving incorrect conclusions in this high-stakes area.

© 2025 by Pace Analytics Consulting LLC

The information presented herein does not constitute financial or other professional advice and is intended to be general in nature. It does not take into account your specific circumstances and should not be acted on without a full understanding of your current situation and future goals and objectives by a fully qualified advisor.

bottom of page