In a fair lending self-monitoring program, when a prohibited basis is found in a credit score, management should FIRST ____________.

In a fair lending self-monitoring program, the primary objective is to ensure that lending practices are free from discrimination and comply with fair lending laws. When a prohibited basis is identified in a credit score, management should first suspend the use of the credit scoring system. This immediate action allows the institution to prevent further potential discriminatory practices while addressing the underlying issue.

Suspending the use of the credit scoring system ensures the integrity of the lending process is maintained and helps to protect the institution from regulatory scrutiny and reputational harm. It allows management to conduct a thorough investigation into the credit scoring system's inputs and factors to assess how the prohibited basis influenced credit decisions. This careful scrutiny is essential in developing corrective actions and revising lending policies appropriately.

Moving forward with other options, such as contacting all affected denied applicants or rewriting policies without first addressing the problematic system, could inadvertently continue discriminatory practices and fail to resolve the core issue causing the prohibited basis in the scores. Ordering an immediate stop to making loans could disrupt business operations without adequately addressing the underlying problem, leading to unnecessary harm to compliant applicants. Therefore, pausing the use of the system is a necessary first step toward ensuring fair lending practices.