Beyond Accuracy: A Multi-Dimensional Explainability and Model-Risk Framework for AI-Based Credit Decisions in Banking

Beyond predictive discrimination, selecting AI models for mortgage lending requires examining explainability, fairness, calibration, stability, and governance. This study proposes a Beyond-Accuracy, Interpretability and Model-Risk Scoring (BAIMRS) framework and analyzes recorded decisions for 9,360,942 applications in the 2025 Home Mortgage Disclosure Act (HMDA) data. These labels describe historical lender denials, not borrower default; public HMDA data do not include credit scores. Four algorithms (Logistic Regression, Random Forest, XGBoost, and LightGBM) were compared with a monotone LightGBM benchmark on a locked test cohort of 1,211,242 applications and three same-year institution holdouts. LightGBM had the highest ROC-AUC (0.8729) and precision-recall AUC (0.7696), narrowly ahead of XGBoost (0.8727, 0.7688); their paired AUC difference was 0.000179 (95% bootstrap interval -0.000149 to 0.000499). However, LightGBM AUC decreased to 0.7530 at Institution A and its calibration ECE10 reached 0.1129 at Institution C. Following correction of numeric-noise robustness tests, Random Forest and XGBoost had close nominal provisional technical means of 64.362 and 63.209, respectively; XGBoost ranked first under a 0.75 anchor-tolerance scale. Demographic-parity gaps were substantial, and expanded SHAP checks used 300 validation cases per model. Formal deployment rankings remained unavailable owing to incomplete independent governance and auditability evidence. BAIMRS provides a transparent descriptive comparison, not lending approval or regulatory certification.

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Publication Details

Journal
Computer and decision making.
Published
2026-11-07
DOI
https://doi.org/10.1922/comdem.v3i6s.19001
Primary Topic
Explainable Artificial Intelligence (XAI)
Type
article
Field-Weighted Citation Impact
0.00
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article

Beyond Accuracy: A Multi-Dimensional Explainability and Model-Risk Framework for AI-Based Credit Decisions in Banking

Kritika Rana, Amit Butail, Anamika
Computer and decision making.
Explainable Artificial Intelligence (XAI)
article

Beyond Accuracy: A Multi-Dimensional Explainability and Model-Risk Framework for AI-Based Credit Decisions in Banking

Kritika Rana, Amit Butail, Anamika
article en

Abstract

Beyond predictive discrimination, selecting AI models for mortgage lending requires examining explainability, fairness, calibration, stability, and governance. This study proposes a Beyond-Accuracy, Interpretability and Model-Risk Scoring (BAIMRS) framework and analyzes recorded decisions for 9,360,942 applications in the 2025 Home Mortgage Disclosure Act (HMDA) data. These labels describe historical lender denials, not borrower default; public HMDA data do not include credit scores. Four algorithms (Logistic Regression, Random Forest, XGBoost, and LightGBM) were compared with a monotone LightGBM benchmark on a locked test cohort of 1,211,242 applications and three same-year institution holdouts. LightGBM had the highest ROC-AUC (0.8729) and precision-recall AUC (0.7696), narrowly ahead of XGBoost (0.8727, 0.7688); their paired AUC difference was 0.000179 (95% bootstrap interval -0.000149 to 0.000499). However, LightGBM AUC decreased to 0.7530 at Institution A and its calibration ECE10 reached 0.1129 at Institution C. Following correction of numeric-noise robustness tests, Random Forest and XGBoost had close nominal provisional technical means of 64.362 and 63.209, respectively; XGBoost ranked first under a 0.75 anchor-tolerance scale. Demographic-parity gaps were substantial, and expanded SHAP checks used 300 validation cases per model. Formal deployment rankings remained unavailable owing to incomplete independent governance and auditability evidence. BAIMRS provides a transparent descriptive comparison, not lending approval or regulatory certification.

Computer and decision making.Vol. 3(6S)
Shoolini University (IN)
Openalex Percentile: Top 19%
Explainable Artificial Intelligence (XAI)
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