Could AI Help Boost Homeownership?

Published Tuesday, December 31, 2019

A recent study shows that the use of algorithms for online mortgage lending may actually help reduce discrimination against some minority groups. The study, conducted by the National Bureau of Economic Research, calls for banks to embrace more artificial intelligence tools to help end bias in home loans and lending decisions.

According to the study, mortgage lenders reject minority applicants, on average, at a rate that is 6% higher than those with comparable economic backgrounds during in-person meetings. But when applicants complete online applications, the acceptance and rejection rates were essentially the same, the study showed.