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#2240092 - 07/24/20 02:26 PM NCRC: Matched Pair Testing of PPP Loans
InFairness, CRCM Offline
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The NCRC has conducted matched pair testing of PPP loan application processes in Washington, DC. They conclude that minority applicants were given less assistance in seeking business credit. Lending Discrimination within the Paycheck Protection Program
Last edited by BrianC; 07/24/20 08:30 PM. Reason: Activate hyperlink
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Fair Lending
#2240120 - 07/24/20 05:21 PM Re: NCRC: Matched Pair Testing of PPP Loans InFairness, CRCM
Rocky P Online
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Thanks for the information InFairness
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#2241194 - 08/18/20 06:28 PM Re: NCRC: Matched Pair Testing of PPP Loans InFairness, CRCM
Michael P Offline
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Joined: May 2020
Posts: 27
"Tester profiles were controlled with racially identifiable names and each tester was required to pass a voice panel test to determine whether or not their perceived race could be determined over the phone. Testers were only used if their voice was perceived to be racially identifiable above 70%."

I find the methodology they used to be inaccurate. I'm sorry, but what is a racially identifiable voice? I have plenty of black friends, and I wouldn't know based on voice or name that any of them were black or white. Is Morgan Freeman black or white based on his name and/or voice? What about James Earl Jones?

Now there are some names that you might assume were black, like Latoya, however, I find it racist to even suggest that a person's voice would identify the color of their skin. Would love to actually HEAR what they made be a "black" voice.

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#2241379 - 08/20/20 06:26 PM Re: NCRC: Matched Pair Testing of PPP Loans InFairness, CRCM
InFairness, CRCM Offline
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My interpretation was that they used testers who spoke in a stereotypical fashion for the race or ethnicity that they were representing and used, for the purposes of the matched pair testing, a name that is typically identified with a particular race/ethnicity. That's how these sorts of tests are usually conducted.
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#2245660 - 11/18/20 07:34 PM Re: NCRC: Matched Pair Testing of PPP Loans InFairness, CRCM
JMcGee Offline
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This follow the same as business lending practices and location of bank branches. It is not a surprise.

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#2245862 - 11/25/20 01:08 AM Re: NCRC: Matched Pair Testing of PPP Loans InFairness, CRCM
Reads Regs Offline
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#2245980 - 11/30/20 10:22 PM Re: NCRC: Matched Pair Testing of PPP Loans InFairness, CRCM
CalifDreamin Offline
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Far from Calif
Thank you for providing the link to the latest report. It was a very interesting read. Perhaps a good training read for commercial lenders - at least the sections regarding the findings.
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