When you say your examiners looked at it, does that mean they chose indirect lending within the scope of their fair lending review and actually performed an analysis? A three point spread seems to be pretty wide - have you run any actual internal statistical analysis against your indirect portfolio to see if there are any patterns outside of a spotcheck?
This brings up another point that I think is eventually going to be an issue also, basing pricing on the credit score. It is my opinion, that unless you can demonstrate actual charge-off ratios or other operating costs that support the spread in the pricing, you are setting yourself up for a disparate pricing problem.
For example, if you charge 2 percent more for loans in xxx-xxx credit score category and you multiply that by the total portfolio value in that range - say $1MM, you would be charging these customers $20,000 more a year in interest. Unless you incur a combination of costs between charge offs and servicing expense of $20,000, you are creating a desparate impact. If you're pricing in that manner, it might be in your best interests to be prepared to defend your pricing practices.
The insurance industry is coming under fire for the same credit score based pricing practices right now - banking can't be too far behind!
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