FairPlay, the platform that aims to reduce the algorithmic bias of financial institutions in their automated decision-making systems, published for the second year in a row, research evaluating publicly available data to identify the fairest cities and lenders in the world. USA.
The data analyzes 2021 loan records for four protected groups, including African American, Native American, Hispanic and female borrowers. To determine equity, FairPlay analysts calculated the Adverse Impact Ratio (AIR) for each of the four protected classes in the top 20 metropolitan statistical areas and the nation’s largest lenders.
The analysis shows that mortgage equity increased for protected classes in 2021, but regional inequities persist, particularly for African American and Native American borrowers.
“In this analysis, we have identified lenders that are successfully underwriting applicants from historically disadvantaged groups, to give more people a fair shot at achieving the American Dream,” said FairPlay founder and CEO Kareem Saleh.
When it comes to Latino applicants, the analysis found that in 2021, Hispanic homebuyers were approved for mortgages at 88.7% of the rate of white homebuyers, while Native Americans at 81.9%, African Americans at 84.4% and female applicants 99.2%.
According to FairPlay, the 10 fairest cities for Hispanic homebuyers are:
–Denver
–Minneapolis
–Seattle
–Dallas
–Portland
–Chicago
– San Diego
– San Francisco
–Washington, D.C.
–Boston
While the 10 Fairest Lenders for Hispanic Homebuyers are:
–Lakeview Loan Servicing
–Gateway First Bank
–Huntington National Bank
–Cardinal Finance
–Homebridge Financial Services
–Academy Mortgage
– Loandepot.com
–Guild Mortgage
–Movement Mortgage
–CMG Mortgage
It should be noted that Hispanic homebuyers experienced the lowest mortgage approval rates in rural areas.
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