army judge
Super Moderator
Hmm, lenders have NEVER stopped their biased lending practices.
Holding 17 different factors steady in a complex statistical analysis of more than 2 million conventional mortgage applications for home purchases reported to the government, we found that, in comparison to similar white applicants, lenders were:
● 80% more likely to reject Black applicants
● 70% more likely to deny Native American applicants
● 50% more likely to turn down Asian/Pacific Islander applicants
● 40% more likely to reject Latino applicants
These are national rates.
When we examined cities and towns individually, we found disparities in 90 metros spanning every region of the country. Lenders were 150% more likely to reject Black applicants in Chicago than similar white applicants there. Lenders were more than 200% more likely to reject Latino applicants than white applicants in Waco, Texas, and to reject Asian and Pacific Islander applicants than white ones in Port St. Lucie, Florida. And they were 110% more likely to deny Native American applicants in Minneapolis.
"Lenders used to tell us, 'It's because you don't have the lending profiles; the ethno-racial differences would go away if you had them,'" said José Loya, assistant professor of urban planning at UCLA who has studied public mortgage data extensively and reviewed our methodology. "Your work shows that's not true."
The secret bias hidden in mortgage-approval algorithms
Holding 17 different factors steady in a complex statistical analysis of more than 2 million conventional mortgage applications for home purchases reported to the government, we found that, in comparison to similar white applicants, lenders were:
● 80% more likely to reject Black applicants
● 70% more likely to deny Native American applicants
● 50% more likely to turn down Asian/Pacific Islander applicants
● 40% more likely to reject Latino applicants
These are national rates.
When we examined cities and towns individually, we found disparities in 90 metros spanning every region of the country. Lenders were 150% more likely to reject Black applicants in Chicago than similar white applicants there. Lenders were more than 200% more likely to reject Latino applicants than white applicants in Waco, Texas, and to reject Asian and Pacific Islander applicants than white ones in Port St. Lucie, Florida. And they were 110% more likely to deny Native American applicants in Minneapolis.
"Lenders used to tell us, 'It's because you don't have the lending profiles; the ethno-racial differences would go away if you had them,'" said José Loya, assistant professor of urban planning at UCLA who has studied public mortgage data extensively and reviewed our methodology. "Your work shows that's not true."
The secret bias hidden in mortgage-approval algorithms
