US mortgage approval algorithm racial discrimination

An investigation has found that mortgage lenders are much more likely to turn down Latino, Asian, Native American and Black applicants than White ones. 

A Markup assessment of mortgage data, co-published by the AP, discovered that mortgage loan applicants of colour were 40%–80% more likely to be denied than their White counterparts across the US, and that the disparity was greater than 250% in some urban areas.

The algorithms used by lenders are mostly mandated by Freddie Mac and Fannie Mae, whose own underwriting algorithms are a closely held secret.

The Markup's investigation was cited as a reason for the introduction of the US Algorithmic Accountability Act of 2022.