Are Algorithms Used by Fintechs Discriminating Against Borrowers?

Elizabeth Warren and Doug Jones are asking regulators to take a closer look at the tools that fintechs are using in lending practices; the comments were part of a letter to the heads of the Federal Reserve Board, OCC, FDIC and the CFPB; in it, they discuss research which showed that algorithmic lending can make it easier for consumers to apply for mortgages but also can discriminate against borrowers, resulting in higher interest rates for African-American and Hispanics; the senators commented  that these algorithms are as discriminatory as loan officers; they hope to better understand what regulators are doing in this area and whether analysis has been done to determine the impact on minority borrowers. Source

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