New Study: Credit Scoring Does Not Eliminate Race, Age Bias
A new study by the National Community Reinvestment Coalition has found that discrimination is widespread in home lending, resulting in the extension of subprime or predatory loans to minorities and older purchasers of homes. Traditionally, lenders have argued that credit scoring systems allow lending decisions to be made in a colorblind fashion. However, the study, which controlled for risk and housing market conditions, found that race and age were strongly correlated with unfair, high-cost subprime lending.
Study Indicates Mortgage-Rate Bias Against Blacks, Seniors
Washington Post, December 11, 2003.
Race and Age Discrimination in Lending Documented
National Community Reinvestment Coalition, December 2003.
