Navy Federal Credit Union Faces Allegations of Racial Bias in Mortgage Approvals
December 14, 2023
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.
- Alleged deployer
- federal-navy-credit-union
- Alleged developer
- unknown-developer-of-automated-underwriting-technology
- Alleged harmed parties
- federal-navy-credit-union-customers
Source
Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/618
Data source
Incident data is from the AI Incident Database (AIID).
When citing the database as a whole, please use:
McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.
Pre-print on arXiv · Database snapshots & citation guide
We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.