LendingClub Corporation
AUTOMATED CREDIT MODEL COMPLIANCE PROOFING

Abstract:

Techniques are provided for testing policy modules for bias. Policy modules are software modules that generate lending decisions based on information about loan applicants. The techniques involve performing multiple testing iterations based on each test case. For example, in one iteration, values for all input parameters of the policy module may come from the test case. That iteration produces a "baseline" lending decision. During other iterations, the values for most input parameters do not change. However, for the one or more input parameters that correspond to the characteristic for which bias is being tested, the input values are changed from iteration to iteration. For example, when checking for age bias, the age of a loan applicant may be varied with each iteration. The lending decisions generated based on each test case are collectively referred to as a "sibling batch" of lending decisions. The testing platform determines whether bias exists based, at least in part, on the degree of deviation among the lending decisions in each sibling batch.