An Introduction to Fair Lending Marginal Effects for Financial Institutions

Legal & Regulatory Compliance

Some regulators have begun to incorporate a new risk measuring tool in their examinations called “marginal effects,” but it has been found that many fair lending and compliance officers are not only unaware that regulators use marginal effects, but are also unfamiliar with the methodology in general. In this webinar, learn how marginal effects differ from previous and more common risk measures, namely odds ratios and what some of the advantages are to using marginal effects instead of odds ratios.

Who Should Attend: Chief Compliance Officer, Fair Lending Officer, Compliance Analyst, Auditor

Learning Objectives

  • Learn or improve understanding of what marginal effects are
  • Know the differences between marginal effects and odds ratios
  • Value the benefits provided by marginal effects: using same methodologies as regulators, reducing regulatory risk, and lowering manual review time and cost.


Arthur R. (Rick) Preiss, PhD.
President and Founder
Preiss&Associates, LLC.,

Rick Preiss works with all sizes of financial institutions to perform custom fair lending risk assessments, mentor in-house fair lending modeling processes, and collaborate to maximize software value. Located in Lake Forest, Illinois, Preiss&Associates has been a full-service compliance consulting firm since 1992, serving clients nationwide. The company’s unrivaled fair lending expertise performing a wide variety of statistical fair lending analyses is utilized by financial institutions and law firms defending financial institutions. Risk areas covered include underwriting, pricing, and redlining for numerous credit products.

Philip B. Preiss
Manager – Consulting & Analytics
Preiss&Associates, LLC.

Phil Preiss directs the company’s use of statistical procedures to perform fair lending analyses, including assessing fair lending risks in underwriting, pricing, and redlining of various credit products. Before joining Preiss&Associates, Phil focused his career on developing logistics efficiency models for the transportation industry at Coyote Logistics. During his tenure at Coyote, the 2011 startup company grew to over $1 billion in revenue and was purchased by UPS. Phil’s work in developing models continues at Preiss&Associates as he applies his statistical and modeling acumen to fair lending analyses for the firm’s financial institution clients.

Webinar Fees

Pricing For Price Season Pass
Bank Member $195 $0
Bank Nonmember $249 $0
Affiliate Member $195 $0
Affiliate Nonmember $249 $0

Season Pass Members receive 4 individual logins to every webinar

Additional Info

Participants will earn 1.0 CPE credit

Field of Study: Specialized Knowledge

Prerequisites: None

Advanced Preparation: None

Program Level: Overview

Delivery Method: Group Internet Based

Refunds and Cancellations: Webinar registrations are non-refundable. If the registrant is unable to attend the designated time and date of the webinar, a playback link and any written materials will be provided within 2 business days following the conclusion of the webinar

Western Bankers Association is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its


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