Algorithmic Discrimination in Mortgage Lending Continues Redlining by New Means

A 2023 Markup investigation found lenders using algorithmic underwriting denied mortgage applications from Black applicants at rates up to 84% higher than white applicants with similar financial profiles. CFPB and DOJ investigations found discriminatory lending patterns at multiple institutions. HUD issued guidance in 2023 clarifying that algorithmic discrimination violates the Fair Housing Act.