Skip to content

Fair Lending 101: What Does BISG Mean in Fair Lending?

Question: 
What does BISG stand for, and what does BISG mean for Fair Lending Compliance?
Answer: 

BISG stands for "Bayesian Improved Surname Geocoding." It is the algorithm and process regulators, including the CFPB, use for assigning gender and ethnicity to individual applicants and borrowers of certain loan product types. The BISG methodology evaluates the likelihood of gender and race for a specific name.

Financial institutions are not allowed to collect race, ethnicity and gender for all loan types. However, regulators expect lenders to append demographic information to all loan data so that it can be analyzed for lending disparities and evidence of discrimination. BISG allows lenders and their regulators to estimate the likely demographic information of applicants and borrowers to evaluate whether the institution is in compliance with Fair Lending.

________________________
Email info@trupointpartners.com to learn more about BISG methodology in Fair Lending.

TRUPOINT Partners provides regulatory compliance solutions and services to more than 450 financial institutions nationwide. We specialize in risk assessments, data analysis, geo-coding and consulting for BSA/AML, CRA, Fair Lending, HMDA & UDAAP compliance. To learn how we can help you achieve your compliance goals, visit www.trupointpartners.com, call 704.401.1730, or email info@trupointpartners.com.

First published on 12/06/2015

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics