'On the Take': The Black Box of Credit Scoring and Mortgage Discrimination

@article{Havard2011OnTT,
  title={'On the Take': The Black Box of Credit Scoring and Mortgage Discrimination},
  author={Cassandra Jones Havard},
  journal={University of Baltimore School of Law Legal Studies Research Paper Series},
  year={2011}
}
  • Cassandra Jones Havard
  • Published 2011
  • Economics
  • University of Baltimore School of Law Legal Studies Research Paper Series
Subprime credit, a relatively new method of risk-based pricing, has been hailed as a way to open up markets and provide access to credit to those who would otherwise be excluded. Evidence suggests that subprime mortgage segmentation increases rather than reduces exclusionary practices in lending. Furthermore, what is unclear is how lenders determine who qualifies as a subprime borrower. This concern became manifested when studies demonstrated that minority borrowers, regardless of… 
Payback: A Structural Analysis of the Credit Card Problem
The market failure deemed “the credit card problem” is in fact a story of unprecedented market success. Advanced underwriting technology has facilitated identification of the most profitable credit
Fair Housing Act Challenges to the Use of Consumer Credit Information in Homeowners Insurance Underwriting: Is the McCarran-Ferguson Act a Bar?
Despite the promise of the Fair Housing Act, structural inequality in the housing market persists. One of the most notable manifestations of this inequality is the racial and ethnic divide in
The Price Is (Not) Right: Data Protection and Discrimination in the Age of Pricing Algorithms
TLDR
An enquiry into how antidiscrimination law specifically interacts with data protection law remains crucial to understand how individuals are protected in their access to goods and services, especially in the context of pricing algorithms.
Explicability Assessment Framework (EAF) for Automated Credit Decisions by Machine Learning Systems
TLDR
This research aims to design a prospective pragmatic assessment framework that can guide decisionmakers, within machine learning applications in European credit underwriting cases from the point of view of explicability, and was found in two case studies that the framework helps with the decisionmaking whether a machine learning system is sufficiently explicable or not.
The Black Box Society: The Secret Algorithms That Control Money and Information
Every day, corporations are connecting the dots about our personal behaviorsilently scrutinizing clues left behind by our work habits and Internet use. The data compiled and portraits created are
Ai, on the Law of the Elephant: Toward Understanding Artificial Intelligence [Abstract]
Machine learning and other artificial intelligence (“AI”) systems are changing our world in profound, exponentially rapid, and likely irreversible ways. Although AI may be harnessed for great good,
Scaling Up Affordable Lending : Inclusive Credit Scoring January 2018
  • Economics
  • 2018

References

SHOWING 1-10 OF 22 REFERENCES
Subprime Borrowers: Mortgage Transitions and Outcomes
Public policy concerns increasingly have focused on subprime lending. Our research uses a survey of prime and subprime borrowers to address whether borrowers “inappropriately” are channeled to the
Looking Back and Looking Ahead as the Home Mortgage Disclosure Act Turns Thirty-Five: The Role of Public Disclosure of Lending Data in a Time of Financial Crisis
This article examines the history of the Home Mortgage Disclosure Act (HMDA) and makes proposals for improving it to help prevent another economic crisis. Passed in 1975, HMDA requires most lenders
Evaluating Statistical Models of Mortgage Lending Discrimination: A Bank-Specific Analysis
TLDR
The results from three national banks demonstrate that, by incorporating the specific underwriting guidelines of each bank, the alternative approach significantly improves the ability of the model to explain the outcomes of the mortgage lending decision process when compared to a single generic specification applied across all banks.
Reforming the Law of Proprietary Information
As the nation continues its shift toward an information economy, knowledge becomes an ever more significant asset for American employers. Accordingly, the legal rules that control the flow of this
An Analysis of the Correlates of Discrimination Facing Young Hispanic Job-Seekers
This study examines the extent and correlates of discrimination faced by young, accented, Hispanic males in Chicago and San Diego, using the outcomes of job applications by matched pairs of Anglo and
finding that the approval rates of African-American applicants correlate with the lender's percentage of African-American employees); see also Ross & Yinger, supra note 216
  • J. HOUSING RES
  • 1999
See Ross & Yinger, supra note 215
    An Argument For Imposing Disclosure Require ments On Public Companies, 32 FLA
    • 2004
    Similarly, researchers also presume that any deviations from assigned weights are random
      ...
      ...