To better address inequities in the backend technologies in the mortgage lending business, a leading association is hosting an event where participants will brainstorm solutions.
The Tech Equity Hackathon, scheduled to take place on June 16-18 in Washington, DC, is the brainchild of the National Fair Housing Alliance, an association of civil rights and fair-housing organizations. According to NFHA Chief Tech Equity Officer Dr. Michael Akinwumi, algorithms dealing with mortgage underwriting and appraisals can often be biased against people of color buying homes, and undervalue homes in neighborhoods with high proportions of people of color. For instance, a 2021 investigation conducted by reporting outlet the Markup found that due to AI bias, Black mortgage applicants were 80 percent more likely to be rejected than White applicants; in Waco, Texas, Latino applicants were 200 percent more likely to have their applications rejected by lenders.
Improving diversity and fairness in homeownership, Akinwumi said, requires diverse groups working on the problem.
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