Description: Navy Federal Credit Union, serving military members and veterans, faced allegations of racial bias in its mortgage approval process, which relies on automated underwriting technology. In 2022, data revealed significant disparities in loan approvals, with over 50% of Black applicants denied, compared to higher approval rates for white applicants.
Entities
View all entitiesAlleged: Unknown developer of automated underwriting technology developed an AI system deployed by Federal Navy Credit Union, which harmed Federal Navy Credit Union Customers.
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cnn.com · 2023
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The largest credit union in the US has the widest disparity in mortgage approval rates between White and Black borrowers of any major lender, a trend that reached new heights last year, a CNN analysis found.
Navy Federal Credit Union, which…
cnn.com · 2024
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Casey Tolan, Rene Marsh post-incident response
More than four dozen members of Congress signed on to two letters Thursday expressing concern about the lending practices of the nation's largest credit union, citing a CNN investigation into racial disparities in the lender's mortgage appr…
financialregnews.com · 2024
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Dave Kovaleski post-incident response
A group of U.S. senators are calling on the Department of Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau (CFPB) to review the gap in mortgage approval rates between white applicants and Black and Hispanic a…
Variants
A "variant" is an incident that shares the same causative factors, produces similar harms, and involves the same intelligent systems as a known AI incident. Rather than index variants as entirely separate incidents, we list variations of incidents under the first similar incident submitted to the database. Unlike other submission types to the incident database, variants are not required to have reporting in evidence external to the Incident Database. Learn more from the research paper.