Fintech Lending and Mortgage Credit Access

Following the 2008 financial crisis, mortgage credit tightened and banks lost significant mortgage market share to nonbank lenders, including to fintech firms recently. Have fintech firms expanded credit access, or are their customers similar to those of traditional lenders? Unlike in small business and unsecured consumers lending, fintech mortgage lenders do not have the same incentives or flexibility to use alternative data for credit decisions because of stringent mortgage origination requirements. Fintech loans are broadly similar to those made by traditional lenders, despite innovations in the marketing and the application process. However, nonbanks market to consumers with weaker credit scores than do banks, and fintech lenders have greater market shares in areas with lower credit scores and higher mortgage denial rates.

Mediclaim insurance challenges and solutions – Doctors supporting patients: A Medic LAWgic initiative

Introduction: Because patients covered by medical insurance are being denied legitimate claims, doctors are working shoulder to shoulder with them and have garnered significant experience in this matter. We, therefore, decided to a systematic survey under the Medic LAWgic banner and presented the data. Methods: A short, 8-question multiple-choice survey was conducted online among doctor clinicians. Duplicate replies were removed. The remaining replies were evaluated, interpreted, and the data are being presented here. Results: A total of 377 doctors responded. The majority (208, 55%) had faced problems with medical insurance claims in more than 10% of their patients. Almost half of them (48%) had outright rejection of the claims in more than 10% of their patients. Reduction in claim amounts was faced in more than 10% instances by 262 (70%). The five most common causes for refusal or rejection of claims included failure of patient to disclose pre-existing illness (234, 62%), other insurance policy terms related issues (157, 42%), oral medication (199, 53%), treatment without admission (155, 41%), and treatment with new modes of therapy (152, 40%). As many as 301/377 (80%) doctors had written letters to the insurance companies for supporting their patients’ claim. Such supporting letters from the treating doctors resulted in the claim being accepted or approved in 216 instances (57%). Discussion: Mediclaim denial is a major and growing problem. People who need financial assistance the most are also the most vulnerable to denial. In the USA, such denial rates ranged from 1% to 45% of in-network claims in the year 2017. Unfortunately, <0.5% of patients appealed such claim denial. The insurance regulatory and development authority of India (IRDA) have issued guidelines that all claims need to be settled within 30 days and that insurance companies must fulfill their contractual commitment for genuine claims, even if timely intimation was not possible. Insurance companies are running a business for profit. Hence, even the most expensive plans will have a list of exclusions, in the fine print. Indian patients need to be proactive in following up when claims are rejected or reduced. Doctors are their pillar of support, whose advantage needs to be taken by them. IRDA and consumer courts are also looking after patients’ rights in this matter. Conclusion: Patients are increasingly facing challenge of medical insurance companies denying legitimate claims. Doctors help by writing to the insurance companies supporting their patients claim and such letters help in the majority of instances. Patients and their families need to follow up aggressively when their claims are not approved, rejected or reduced. They should also request the help of their doctors when facing such challenges.

Post-partum intrauterine contraceptive device: acceptability and safety

Background: Antenatal period is the ideal time for counselling regarding contraception. PPIUCD is a long term reversible method for unmet need of contraception in women of reproductive age. The objectives of this study were to determine proportion of women accepting PPIUCD insertion, their socio-demographic, obstetrics characteristics, reason for acceptance, denial, rates of expulsion, complications and continuation rate till 10 weeks after insertion.Methods: A prospective descriptive study on 300 consented women was done in 2012-2013. A structured questionnaire and performa were used to obtain data. PPIUCD (CuT380A) was inserted in these women and were followed up till 10 weeks post insertion.Results: Out of 300 women counselled, only 85 accepted PPIUCD giving an acceptance rate of 28.33%. Women who had short inter-conceptional period or those who had previously used interval IUCD were significantly associated with greater acceptance. Fear of pain, heavy bleeding and infertility when planning next pregnancy were the most common reasons for denial. Continuation rate was 86.89% at 10th week after insertion. No major complication was observed i.e. perforation, infection and pregnancy.Conclusions: PPIUCD is quite safe method of contraception. Adequate counselling and clarification of myths associated with PPIUCD use can help acceptance and meet the unmet needs of contraception in post-partum period and even later in reproductive age women.

The conditional spatial correlations between racial prejudice and racial disparities in the market for home loans

Many studies have shown the existence of disparities in loan denial rates between blacks and whites that cannot be accounted for by observable applicant characteristics. Examining the link between racial gaps in home loan denial rates and prejudicial attitudes toward blacks measured by questions in the General Social Survey, this article shows not only that blacks are more likely to be denied conventional home mortgages but that denial rates among blacks for these loans are also geographically correlated with racial prejudice, particularly among first-lien home purchase loans and loans from depository lenders. However, among Federal Housing Administration-insured loans guaranteed by the government in the event of borrower default, this study finds no evidence of a statistical relationship between racial prejudice and loan denials among black applicants. Results are consistent with taste-based discrimination by discriminatory lenders; however, one cannot rule out that statistical discrimination is at least partially driving the results.

Is there Ethnic Discrimination in the UK Market for Small Business Credit?

A large-scale survey of UK small business finances is analysed for evidence of ethnic discrimination in the credit market. A summary analysis of credit outcomes (loan denials , loan interest rates and discouragement) reveals large differences across ethnic groups with Black and Bangladeshi businesses, in particular, experiencing poorer outcomes than White and Indian businesses. Econometric analysis indicates that ethnic differencs in denial rates and interest rates can be explained by variations in non-ethnic risk factors such as missed loan repayments and overdraft excesses. This suggests there is no ethnic discrimination in credit markets. However, ethnicity appears to influence whether business owners felt discouraged from applying for loans even after controlling for differences in loan application costs and risk. This suggests some ethnic groups may be affected by misperceptions of ethnic discrimination. The implications of these findings for UK policy are discussed.