EXPERIENCE
Welch Consulting was retained by counsel for a large national mortage market participant to review the claims history of homeowners’ policies in five metropolitan areas. Plaintiffs alleged that use of credit scores to evaluate applications for homeowners’ policies was discriminatory. In a study that took into account other factors used in underwriting, our economist found a strong and statistically significant correlation between the credit score and claim activity. This relationship was observed for every type of coverage in each of the areas studied.
Welch Consulting was retained by attorneys for large national insurance company in a class action involving redlining in homeowners insurance in St. Louis. Our analysis showed that the geographic distribution of policies was explained by income, wealth, whether the home had a mortgage, and home value. The data provided no evidence that homeowners in minority neighborhoods were less likely to have insurance once these factors were taken into account.
Welch Consulting was retained by attorneys for a national bank under investigation by the US Department of Justice for possible discrimination and redlining in mortgage lending claims. Our economists analyzed loan level data to determine whether minorities were less likely to be approved for loans than similarly qualified whites. The analysis showed that racial differences in approval rates were explained by higher frequency of poor credit histories among minority applicants.
Welch Consulting was retained by attorneys for a major national mortgage market participant to conduct a study of whether loans to minorities and low-income homeowners were more likely to have high interest rates, as reported in the expanded Home Mortgage Disclosure Act (HMDA) data.
Welch Consulting was retained to conduct a series of analyses for a government sponsored enterprise in a number of areas. In one study, Welch economists analyzed how HUD defines “underserved areas” in its regulation of lending to minority and low-income borrowers by a government sponsored enterprise. In another, Welch economists used Home Mortgage Disclosure Data (HMDA) and Census data to analyze the effect of revised lending goals for underserved areas set US Department of Housing and Urban Development (HUD). Still another report, distributed to congressional staff and the financial media, assessed the relative costs and benefits of federal sponsorship of a government sponsored enterprise.
Welch Consulting was retained to conduct several studies to assist a major insurance company in responding to a state insurance department’s regulations concerning quarterly market reports in which companies provided detailed data on vehicles and dwelling units insured by ZIP Code.
|
