The secret bias hidden in mortgage-approval algorithms
The new four-bedroom house in Charlotte, North Carolina, was Crystal Marie and Eskias McDaniels’ personal American dream, the reason they had moved to this Southern town from pricey Los Angeles a few years ago.
Interesting read on how mortgage lending and the financial systems work, laws around fair housing, and how discrimination just persists throughout the system. The responses from the lenders were borderline gaslighting IMO.
“An investigation by The Markup has found that lenders in 2019 were more likely to deny home loans to people of color than to white people with similar financial characteristics — even when we controlled for newly available financial factors the mortgage industry for years has said would explain racial disparities in lending.”Posted on 2021-08-25T23:59:02+0000